Gold Price Chennai, April 15: After Surprise Rise In Prices On Sunday, Big Drop In Yellow Metal

Gold prices in Chennai recorded a sharp drop in Chennai today as yellow metal India prices witnessed a rally on Monday. 24K Gold prices Chennai today slid by Rs 710 to Rs 74,070/10 grams while 22K yellow metal prices declined by Rs 650 to Rs 67,900/10 grams. The price of 100 grams of 22 carat gold price in Chennai is Rs 6,79,000 after the fall by Rs 6,500 and price of 100 grams of 24 carat yellow meatal price in Chennai is Rs 7,40,000 after the fall by Rs 7,100 on April 15.

Price of 18 carat of 10 grams gold in Chennai today is Rs 55,620 after the decline by Rs 530 and price of 100 grams of 18 carat gold in the city today is Rs 5,56,200.

When it comes to highest gold prices in various cities of India, Chennai's name figures on the top in the list. Gold prices are highest in Chennai amid the latest surge in yellow metal prices all across the globe.

Meanwhile, gold prices surprisingly recorded sharp jump on Sunday in Chennai. 22K gold prices Chennai on April 14 jumped by Rs 750 to 68,550/10 gram. Price of 24K yellow metal in Chennai on April 14 rallied by Rs 820 to Rs 73,960, highest among several cities in the country. Meanwhile, 18K yellow metal price Chennai scaled its new high of Rs 56,150 after the rally of Rs 610 yesterday.

Why Gold Prices Vary In Various Cities Of India?

Demand for yellow metal differs by city and state in India. South India accounts for approximately 40% of India's total gold consumption. Down South, Kerala consumes almost a third of gold imported by India. Meanwhile, demand for yellow metal is higher in cities such as Mumbai, Chennai, Delhi, and Kolkata when compared with tier 2 cities. It lets sellers to buy gold in bulk at discounted rates. Consequently, they will be able to sell at reduced prices, according to Groww.in.

It is interesting to note that local jewellery or bullion associations also play significant role in fixing the gold prices within a city. For instance, The Jewellers and Diamond Traders' Association, Madras, plays significant role in fixing gold prices in Tamil Nadu. Similarly, there are several other associations across India that decide the local gold rates.

Meanwhile, purchase price of gold emerged as most important factor in influencing gold rates in different cities. Jewellers who have stock bought at reduced rates can charge lower rates.

Why Gold Prices Are Rising Globally?

Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities said, "Gold prices are largely driven by escalating tensions between Iran and Israel amidst the ongoing Middle East crisis. This geopolitical uncertainty has fueled a rush into safe-haven assets, propelling gold prices up by 1.60%. Despite this sharp increase, the overall trend in gold remains bullish, with strong support seen at Rs 70,000 per 10 gm mark."

Geopolitical tension in the Middle East continues to escalate. Recently, Iran fired over 300 drones and missiles at Israel. Tehran claimed the counter attack was in response to the April 1 strike on its consulate in Syria. However, nearly all the Iranian drones and missiles were reportedly shot down by Israel, US, and allied forces before they reached their targets.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher remarked on soaring gold rates saying, "The precious metal has been skyrocketing in the last one and a half month from Rs 62,200 zone to touch Rs 72,800 per 10 gm levels, gaining almost 17% in a very short period. Currently, with the geo-political tensions looming around, the yellow metal is anticipated to gain further in the coming days with near-term targets of Rs 73,700 and Rs 75,200 levels. The near-term support would be maintained near the Rs 70,200 zone as of now."