Deepavali cheer: Chennai gold prices falls by Rs 2,480 per sovereign

CHENNAI: Gold and silver prices in Chennai declined sharply on Saturday, offering some relief to consumers ahead of deepavali, with 22-carat jewellery falling by Rs 2,480 per sovereign in a single day.

The price of 22-carat gold dropped by Rs 310 per gram to Rs 12,730, compared with Rs 13,040 on Friday. Consequently, the price of a sovereign (eight grams) fell to Rs 1,01,840 from Rs 1,04,320.

The decline was steeper in the 24-carat segment, with pure gold falling by Rs 338 per gram to Rs 13,887. The price of eight grams of 24-carat gold stood at Rs 1,11,096, registering a decline of Rs 2,704 from the previous day's rate.

Silver prices also moved downwards, with a gram declining by Rs 10 to Rs 200. A kilogram of silver was priced at Rs 2 lakh. The latest decline follows a period of volatility in the precious metals market.

Gold prices had edged upwards over the previous week before reversing course in recent trading sessions, with consecutive declines on Friday and Saturday, bringing some relief to buyers. The fall comes ahead of deepavali, when jewellery purchases traditionally gather pace.

The reduction in prices could provide an incentive to households planning gold and silver purchases for the festive season, particularly after the recent fluctuations in rates.