CHENNAI: Gold price in the city has dipped by Rs 5,280 per sovereign and Rs 660 per gram on Thursday, within five days of crossing the Rs 13,000 mark per gram. The prices stand at Rs 99,520 per sovereign and Rs 12,440 per gram.
Silver also witnessed a slight dip of Rs 29 per gram, bringing the price to Rs 256 per gram on Thursday.
Jayantilal Challani, president, Madras Jewellers and Diamond Traders Association, attributed the dip to the slow US market due to Christmas and New Year holidays.
Demand is high for gold as the buyers anticipate the price will go high and purchase the metal
Jayantilal Challani
Post the COVID-19 pandemic, gold prices have been steadily increasing. Recently, the rising demand among large investors, Global Central Banks and consumers has been driving up the rates.
Economist V Gopalakrishnan explained, "Gold price is inversely related to the global economic outlook. Whenever the global economy goes through uncertainty, gold prices sharply increase. US President Donald Trump's tariff-driven flip-flops have fuelled uncertainty in various parts of the world. Added to that, the softening interest rates in the US weakened the Dollar, thereby boosting gold prices."
"As long as global economic uncertainty persists, gold will continue with its uptrend, barring a few periodical corrections. Consumers who want to buy for occasions have no choice but to buy it at the prevailing rates. Investors buying gold for investment purposes should be careful, as the prices are peaking. In short, Trump's era is a golden era for Gold prices," he added.