Gold price hits all-time high in Chennai, traders expect it to touch Rs 60,000/sovereign
Sales do not affect prices of the yellow metal, but global factors do, industry experts tell DT Next, who also warn denizens to expect a further spurt
Gold Jewellery (File Photo)
CHENNAI: The yellow metal continues to burn bright with the price of one sovereign (8 gm) of gold costing around Rs 50,000. It went up by another Rs 1,120 on Friday making it much dearer, in more ways than one, to customers.
In Chennai, the price of 8-gm gold spiked to an all-time high of Rs 51,120. Since February last week, the gold prices have been steadily increasing. At present, gold is sold at Rs 6,390 per gram in the city. Price of silver too has spiked by 30 paise to Rs 80/gram with a kilo bar of silver selling at around Rs 80,000 mark.
Experts predict that gold prices will further escalate in the next few months. In 2025, it would cost around Rs 60,000 per sovereign.
“Increase in gold prices was expected. We don’t know the exact reason for the surge. It could be due to the strength of the dollar or any other financial aspect at the global level. But it’s not determined by the sales,” said PR Somasundaram, spokesperson for the World Gold Council. “In the coming months, gold price would be volatile but it wouldn’t affect sales. Demand for gold jewellery would increase not only in Chennai but also across the country.”
However, Jayantilal J Challani, president of The Jewellers and Diamond Trader’s Association-Madras, claimed that the Ukraine war and weak global economy indices had pushed up gold prices. “The sudden spurt in gold prices is also due to the non-increment of the fixed deposit interest. As an alternative, people started buying gold for investment, especially in India,” he stated.
He added that 20 years ago, parents would buy gold jewellery for the women in the family. “Youngsters would never buy it. But now, age is not a factor. Besides, it’s not only an ornament but also an investment for many families,” Jayantilal opined. “In a short period, the price would reach Rs 77,000 for 10-gm jewellery (Rs 60,000 for 8 gm).”
L Sasikanth, a senior salesman in a gold jewellery shop at Pallavaram, said that most of the medium and small jewellery shops will be affected by the sudden spurt in the price due to saving schemes. “All jewellery shops across TN have a gold saving scheme. Those who availed it would have been promised that they would get the same gold price when they joined the scheme,” he averred.
