CHENNAI: Gold price is showing no sign of slowing down, recording a rise of Rs 1,000 per gram in just 30 days to reach a historic high of Rs 11,125 per gram and Rs 89,000 per sovereign in Chennai on Monday.
To put this breakneck speed in context, it took two years from March 7, 2022, to March 3, 2024, for it to rise by Rs 1,000, and seven months since then to climb further by another Rs 1,000.
“The main reason for the increase in gold price is the changes in the geopolitical situation, especially the developments in the United States. To strengthen its economy, they started hoarding gold, and many other countries are also purchasing it," said S Santha Kumar, secretary, the Jewellers and Diamond Traders Association - Madras.
"It is expected to cross Rs 12,500 per gram (Rs 1 lakh per sovereign) before the end of December. The demand has come down due to the price hike, but the rate would increase again, and those considering it as an investment should purchase it now," he added.
Noting how this was affecting the families that have planned weddings in the near future, B Sabarinath, president, Tamil Nadu Jewellers Federation, said, "The customers who are not able to purchase gold are now turning to gold-plated silver jewellery, which is increasing in demand."