Chennai Gold Price Slips Rs. 1200 Recently, Buy Gold As Hedge Against Inflation?

Gold is known as a good hedge against inflation. A stressed gold price in the major Indian cities is influencing investors to buy gold for beating inflation and gaining high long-term returns. Recently, the gold rates in Chennai slipped sharply in the last 3 days. The 22-carat gold price dropped by Rs. 1100/10 grams and the 24-carat gold price dropped by Rs. 1200/10 grams.

In Chennai, gold rates are showing the same trend as the Indian markets. In the city, the 22-carat gold price in Chennai was quoted at Rs. 47300/10 grams, and the 24-carat gold price was quoted at Rs. 51600/10 grams, falling by Rs. 100-110, respectively, today, on October 12.

In the South Indian region, Chennai is one of the most important cities, where the demand for gold is highly significant. Ahead of the festive season, the fall in gold prices will help common buyers to purchase gold. Gold is known as a hedge against inflation. The latest data informs that the Consumer Price Index (CPI) increased to a 5-month high of 7.41% in September, gained from 7% in August. This spike in retail inflation is expected to encourage more buyers to obtain gold this festive season.

Gold rates in Indian cities depend on the international markets, where gold rates majorly change with the movement of the US Dollar index. Today, the US Dollar index increased to 113.59 at the time of writing. Hence, on weak global cues, gold rates dropped in the major Indian cities today.