Gold Rates In Chennai, Madurai, Coimbatore Fall Again

Gold prices in major cities of Tamil Nadu dropped by Rs 150, as global cues remained weak. Gold rates in Chennai were placed at Rs 4,800 per gram, while 24 karats in Chennai was being quoted by local jewellers at Rs 5,240.

In Madurai gold rates were at Rs 4800 per gram, the same as that being seen in Chennai. In Coimbatore, gold prices dropped by Rs 150 and were at Rs 48,000 per 10 grams, while 24 karats gold prices were at Rs 5240 per 10 grams.

Prices of the precious metal have been on a gradual decline over the last few days, as the dollar has gained against a basket of currencies. Fears that the US Fed would hike interest rates in the coming days, has also had its impact on gold prices across the globe. Most investors believe that it would be a good time to accumulate gold on declines.

One of the reasons that gold has fallen in the key Indian cities is also the fact that physical demand for the precious metal has also been subdued. Investors, who are long-term investors and wish to buy gold, can do on further dips. Over the longer term the precious metal has been a perfect hedge against rising inflation.