Massive Crash In Chennai Gold Rates On Dec 13: 22K Gold Falls Rs.5,500/100g, Silver Sinks Rs.3,000

Yellow Metal Rates In Chennai today fell sharply against the backdrop of a rising dollar and rising treasury yield. However, the ongoing geopolitical tensions, including the Russia-Ukraine war and unrest in the Middle East, are keeping demand for gold strong as a safe investment.

Gold Price in Chennai today:

On 13th December 2024, the 22-carat gold rate in Chennai dropped by Rs. 550 per 10 grams, now priced at Rs. 72,300. The 24-carat gold price in Chennai also fell by Rs. 600, settling at Rs. 78,870 per 10 grams. Similarly, the 18-carat gold also decreased by Rs. 450, bringing the price to Rs. 59,700 per 10 grams.

In larger quantities, 24-carat gold per 100 grams saw an increase of Rs. 6,000, reaching Rs. 7,88,700, while 22-carat gold per 100 grams decreased by Rs. 5,500 to Rs. 7,23,000.

Silver Prices in Chennai Today

White metal rates in Chennai also observed a decline in price.Today 1 kg of silver in Chennai costs Rs. 1,01,000 after dropping Rs. 3000. Similarly, 100 grams of silver is also down by Rs. 300, which is now priced at Rs. 10,100.

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

As per a recent Reuters report, spot gold rose by 0.3% to $2,688.29 per ounce as of 0320 GMT, signaling steady market performance. The yellow metal is on track for a weekly gain, having climbed over 2% so far this week. Meanwhile, U.S. gold futures remained stable at $2,711.30 per ounce. Spot silver held steady at $30.94 per ounce without any notable changes. On Thursday, gold prices experienced a sharp decline of over 1%, driven by profit-taking after the metal briefly reached a five-week high earlier in the session.

Reasons for the Decline in Gold Prices in Chennai

Gold prices in Chennai have experienced a pullback after three consecutive sessions of upward movement, driven by a spike in demand for the precious metal. The recent dip in prices has attracted a surge in domestic demand, with buyers flocking to jewelry stores to make purchases while prices remain lower.

A research report by FXStreet highlights that gold prices are witnessing dip-buying, partially reversing Thursday's gain. Despite the recent decline, several global factors continue to support gold's appeal, including ongoing geopolitical tensions, fears of a trade war, and expectations of a potential Federal Reserve rate cut.

However, the metal's gains may face resistance due to expectations of a less dovish stance from the Federal Reserve and elevated U.S. bond yields, which could limit the upward momentum in gold prices, the report further noted.