CHENNAI: Gold prices saw sharp and unpredictable fluctuations, falling by Rs 7,600 per sovereign and Rs 950 per gram in a single day, a day after rising by Rs 9,520 and Rs 1,190 respectively.
On Friday, gold was sold at Rs 15,850/gram and Rs 1,26,800/sovereign. Silver prices also declined, with the metal selling at Rs 405/gram, down by Rs 20 compared with Thursday.
Earlier on Friday morning, one gram of gold cost Rs 16,200, while silver was sold at Rs 415/gram, before both prices declined by evening.
Explaining the volatility, Shanta Kumar, secretary, Madras Jewellers and Diamond Traders Association, said: “The sudden spike was driven by expectations that the US Federal Reserve would cut interest rates. Since that did not happen, prices corrected sharply. Gold prices are likely to remain volatile for a few more days, and it is difficult to predict the trend now.”
Meanwhile, goldsmiths said that they were facing reduced work amid weak demand. A goldsmith from Sowcarpet pointed out, “Jewellers are insisting on minimising gold wastage due to market fluctuations. Sales are low, and jewellers say profits are mainly from handmade jewellery. We’re being asked to reduce wastage to the bare minimum.”
