Gold Prices Jump ₹2,000 in Chennai in a Single Day Amidst Market Fluctuations

The price of 22-carat gold in Chennai experienced a significant jump of ₹2,000 on Wednesday, October 29. The increase occurred in two phases: an initial rise of ₹1,080 per sovereign (8 grams) in the morning, followed by a further hike of ₹920 in the evening, bringing the total daily gain to ₹2,000. This surge followed a period of sharp declines, with gold prices in Tamil Nadu falling by ₹3,000 in a single day on October 28. On Tuesday, gold prices dropped by ₹1,200 in the morning and another ₹1,800 in the evening.

Globally, the yellow metal was trading around $3,950 per ounce. In India, gold prices have seen a substantial correction, falling by over ₹20,000 from its peak of ₹1.41 lakh on October 18 to around ₹1.2 lakh per 10 grams for 24K gold.

Factors influencing these recent price changes include renewed optimism surrounding trade talks between the United States and China. Hopes for a breakthrough in easing trade tensions between the two economic giants have led investors to re-evaluate safe-haven assets like gold.

Impact: This price volatility in gold can affect consumer spending on jewelry, which is a significant part of the Indian economy. It also influences investment portfolios and inflation expectations. For businesses in the jewelry and precious metals sector, these fluctuations pose challenges for inventory management and pricing. Rating: 6/10

Difficult terms: Sovereign: A unit of weight for gold, typically equivalent to 8 grams. Bullion markets: Markets where precious metals like gold and silver are traded in bulk form.