Trump’s Greenland row sends gold price to peak in Chennai

CHENNAI: Greenland, the autonomous region at the heart of the row between US President Donald Trump and Europe, lies nearly 10,000 km away from Chennai. But the row has had a direct impact on the people here, especially those aspiring to buy gold, as the yellow metal went up by Rs 1,320 to reach Rs 1,15,320 per sovereign on Wednesday.

Within a week, the gold price has increased by Rs 1,135 per gram and Rs 9,080 per sovereign, show data.

Silver, too, saw a sharp spike to touch Rs 345/gram or Rs 3,45,000/kg – a steep increase of more than 3.5 times from Rs 98/gram for which it was sold on January 1, 2025.

Explaining the relentless rise, veteran jeweller Jayantilal Challani, president of Jewellers and Diamond Traders Association of Madras, said, “The current surge is primarily due to increased global uncertainty stemming from the Greenland crisis/tax rate tensions and overall risk-averse sentiment. Geopolitical tensions and fears over trade war affect the rate, as investors prefer safe-haven assets like gold.”

After such a rapid rise, price volatility may be high, and pullbacks for profit-taking could happen at any time, Challani added.

With the steep increase in gold price, rented or plated ornaments are taking its place in Indian weddings. "The price is so high that gold is unaffordable for the middle class and lower middle class. We are using the gold coloured ornaments. But for certain ornaments like thali and ring, we don’t have a choice other than buying gold," said a bride-to-be.