Gold Rate Increased in Chennai Due To Seasonal Demand

Ever since the new Modi government has taken charge in the office gold prices are on steep decline, however there were some days when it increased a bit, but generally the trend is on the lower side. Even last week was full of losses for gold traders, but yesterday it regained its lost glitter and now the rate is 60 INR higher at 26,800/- INR per 10 grams for 24L carat gold. The price is same throughout India, but you may see lower or higher priced depending on which city you are buying your gold from. This week the expected rate of gold in Chennai is on the higher side because of festival season and sudden increase for gold supply due to seasonal demand. The reason why rate has slightly increases because jewellers and traders are buying more gold because of ongoing wedding season in india which is going to last for another 2-3 months. The other factor could also be related to increasing demand of supply by gold bars and coin manufacturers.

Chennai Gold Rates

Market analysis’s and gold investment experts are saying that despite jewellers and retailers’ demand for high number of gold import in india the rates shouldn’t have gone up high so dramatically. To back their observation they claimed that China’s decision to cut benchmark interest rates to help the sustainability of their economic reforms and growth agenda is also a prime factor behind this global trend. Even in New York gold rate increased by 0.6 percent and rate in the US is close to $1197.80 per ounce due to these series of events taking place in international markets.

Besides, Chennai being the hot destination for gold jewellers and traders because high demand in the city, other metro cities such as Delhi, Mumbai, Bangalore and Ahmedabad also noticed a huge in gold prices overall. IF you see prices in Chennai, they are currently sitting at 25800/- INR for 10 gms of gold for 24 carats, which is still a good price compared to what it was last year same time.

In coming few months prices are expected to fall because the festival season will be over and therefore the demand will be on the lowest point, which will definitely ease up gold rates all over the country. So if you’re aim is to invest in gold, you should wait and let the prices go down in next few months.

Source: http://en.wikipedia.org/wiki/Gold

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