Gold prices continue to rise. In Chennai, the price has increased by ₹1,720 per sovereign in three days. International market trends, dollar value, and the wedding season are cited as reasons
The continuous rise in gold prices is causing concern for those planning special occasions. People looking to buy jewelry are postponing their purchases due to the soaring prices.
In Chennai, the price of gold has increased by ₹1,720 in just three days. On July 20, one sovereign was priced at ₹73,320. Today (July 23), the price has reached ₹75,040! One gram of gold has increased by ₹95 and is currently selling at ₹9,380. The price of silver has increased by ₹1 per gram to ₹129.
What's behind this?
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- Key reasons for the gold price increase:
- Rise in international gold prices (increase in ounce rate)
- Expectation of lower interest rates in the US
- Decline in dollar value, decline in Indian rupee value
- Tension in the stock market and neutral movement of stocks
- Central banks increasing gold reserves
As the wedding season begins in India, domestic demand also increases, further driving up the price.
What will the gold market look like next week? Experts say:
With gold crossing and holding above ₹75,000, this is seen as a new support level. If the global economic slowdown and market volatility continue, there is a high probability that gold will be bought as a safe investment. It is predicted that the price of gold could rise to ₹75,500 - ₹76,500 next week, and at certain times, profit-taking could bring the price down to ₹74,800.
What can the public do?
Those who want to invest in gold should divide their investment and buy during periods of price fluctuation. Consulting market experts provides additional security. Due to continued faith in gold, it is seen as a "safe asset" even in a volatile market like this.
