Huge Drop In Chennai Gold Prices On Dec 14; 24k, 22k, and 18k Gold Fall Nearly 2% in Two Days; Silver Falls

Gold price in Chennai today fell sharply once again, marking the second decline this weekend. The second week of December had initially been favorable for gold, with prices rising as the dollar weakened and geopolitical tensions supported the yellow metal. However, the market is now closely watching the upcoming Federal Reserve meeting next week, where a decision on an interest rate cut could impact gold prices moving forward.

Gold Price in Chennai today

On Saturday, 14th December, the 22-karat gold rates in Chennai slipped by Rs. 900 per 10 grams to cost Rs. 71,400. While the 24-carat gold fell sharply by Rs. 980 per 10 grams, it currently retails at Rs. 77,890. The cheaper variant also experienced a drop of Rs. 750 to cost Rs. 58,950.

The bulkier quantities of gold also saw a similar drop on a large scale, as the 100 grams of 22-carat gold now cost Rs. 7,14,000 after falling considerably by Rs. 9000. Similarly, 10 grams of 24-carat gold cost Rs. 7,78,900, which slipped by Rs. 9,800.

Silver Prices in Chennai Today

White metal prices in Chennai saw a massive fall for the second consecutive day. Today, the price of 1 kg of silver plummeted by Rs. 1000, now costing Rs. 1,00,000. Similarly, the price of 100 grams of silver took a significant hit, dropping Rs.100 to settle at Rs.10,000. This sharp decline has caught the attention of investors and buyers alike, as silver continues to experience considerable volatility in the market.

Chennai Gold Price Movement in the Last Five Days

Over the last five days the prices have been quite volatile with major gains and losses.

Spot Gold and Spot Silver Rates

According to a recent report from Reuters, spot gold traded at USD 2,652.29 per ounce at 1:43 p.m. ET. This drop came as the U.S. dollar remained firm at its highest level in more than two weeks, exerting downward pressure on the precious metal. Gold futures in the U.S. also saw a decline, settling 1.2% lower at USD 2,675.80 per ounce. Additionally, spot silver faced a similar downturn, falling by 1.3% to reach USD 30.55 per ounce. The strength of the U.S. dollar and investor caution, following mixed economic data from the U.S., contributed to the weakening of precious metal prices. These price shifts highlight the ongoing volatility in global markets, with fluctuations in currency values significantly impacting commodities like gold and silver.

Key Factors Driving the Recent Drop in Gold Prices

Gold prices have fallen for the second consecutive day, largely due to the increase in US Treasury bond yields, which makes non-yielding assets like gold less attractive to investors. Traders are now closely watching for the Federal Reserve's interest rate cut next week, which has led to some cautious trading in gold. As per FXStreet's latest analysis report, gold is currently trading at USD 2,657, down by 0.80%, reflecting a decrease in its value. Despite the recent losses, bullion has gained nearly 1% this week, boosted by the release of US economic data.

Investors and traders are awaiting the release of key US economic reports next week, such as S&P Global Flash PMIs, retail sales, industrial production, and the core PCE Price Index, which will further influence gold prices.