CHENNAI: The record-breaking rally of gold continued for yet another day in Chennai to reach Rs 59,520 per sovereign on Wednesday. With Dhanteras and the marriage season coming up, gold traders in Chennai are expecting it to cross the Rs 60,000-mark in the coming days.
According to retail jewellers in Chennai, barring minor fluctuations, gold price has been on the rise this month, crossing the Rs 57,000 and Rs 58,000-mark earlier in October, and went to a record high of Rs 59,000 – Rs 7,375 per gram – on Tuesday. The rise is expected to continue in November, too.
"It is highly likely that the price will cross Rs 60,000 within the next three days. The surge is mainly due to the demand, as there is a large number of people investing in gold," said Jayantilal Challani, president, Jewellers and Diamond Traders Association of Madras.
"We have witnessed steady foot traffic this Dhanteras... The festive spirit was evident, with increased interest and momentum on Dhanteras, particularly during evening auspicious hours," said Ramesh Kalyanaraman, executive director, Kalyan Jewellers.
Despite the price remaining high, there was no letup in demand. While conservative buyers favoured Shagun coins, younger shoppers preferred lightweight or 18k jewellery, he said.
The period following Shardh season - Navratri, Karwa Chauth, and Pushya Nakshatra - have all contributed to the steady uptick this season, Kalyanaraman added.