Gold Rate in Chennai - 28 Sep 2023

What is the Current Trend in Gold Price in Chennai?

Like other cities in India, the gold rate in Chennai also witnesses constant fluctuations based on the volume of demand and supply for the gold. Based on the current gold rate in Chennai, the trends may change regularly. However, given that Chennai is one of the biggest consumers of gold, the current trend indicates that the demand for gold has been steadily rising in Chennai.

Monthly and Weekly Trends of Gold Rate in Chennai

Gold rates in Chennai keep changing monthly and weekly based on various external factors. Irrespective of the gold rate in Chennai, its citizens can look at the affecting aspects to understand the demand and the subsequent trends. The monthly and weekly trends based on historical prices indicate a favourable market for gold in Chennai.

Importance of Checking Gold Rates in Chennai before Buying

If you want to buy and sell gold as a citizen of Chennai, the first step is to check the gold rate in Chennai to ensure you get the best price. As the gold rate in Chennai fluctuates every day, checking the rate before buying or selling gold can provide the best value for your gold.

Factors that Affects the Gold Prices in Chennai

A buyer or seller needs to understand the factors affecting the gold price rate today in Chennai. These factors affecting the gold rate in Chennai include:

• Demand and Supply: The demand and supply of gold in Chennai are always different from other Indian cities, as they see one of the highest demands for gold. If the demand is greater than the supply, the price will rise. However, if the demand is lower than the supply, the current gold rate in Chennai will rise.
• Margin: Jewellers who import gold from international markets levy a margin over the import price. This margin varies from one city to another and affects the price of gold in Chennai.
• Economic Circumstances: Chennai citizens buy gold to hedge against investment losses when economic factors are negative. Aspects such as inflation also affect the price of gold in Chennai.
• Interest Rates: The rate of gold in Chennai has an inverse relationship with the prevailing interest rates. The increase or decrease in such rates also affects the gold price rate today in Chennai.

How are Chennai’s Gold Prices Determined?

Chennai witnesses a constant demand for gold, especially the 916 hallmarked gold, which is 22 karats pure gold hallmarked by the Bureau of Indian standards. Here are the factors that determine the 916 gold price in Chennai:

1. Buying and Selling: The gold prices in Chennai of the 22 karats gold are determined by the buying and selling volume. The Central Bank buys gold to keep it as a reserve, while citizens buy and sell gold for personal purposes.
2. International Price: The price of gold internationally also determines the base of the domestic 916 gold price in Chennai. Based on this import price, jewellers levy a margin to set the gold price.

Evaluate Gold Price in Chennai with Purity and Karat Methods

Before buying or selling gold in Chennai, it is wise to evaluate the prevailing 24 karat gold rate today in Chennai to ensure you are buying and selling the metal at the right time. There are two methods to compute the gold rate chennai today per gram on any given day. Listed below are the methods and their subsequent formulas:

1. Purity Method (Percentage): Gold value = (Gold’s purity x weight x gold rate) / 24
2. Karats Method:Gold value = (Gold’s purity x weight x gold rate) / 100

These two methods can also determine the value of the gold before applying for a gold loan in Chennai. As the offered loan amount is based on the gold value, these methods help evaluate the 22-karat gold rate in Chennai.

Reasons why Gold Rates Differ Between Chennai and Other Cities

Chennai is one of India's biggest contributors to gold demand and thus requires a high volume of gold. Since the demand and supply for gold differ in Chennai from other cities, the gold rate in Chennai also varies based on such factors. Some of the reasons include:

1. Import Price: The import price of gold in Chennai is different from other Indian cities. Once imported, the jewellery is set at a margin over this price before selling.
2. Volume: The citizens of Chennai may need more gold than other cities as the demand for gold in Chennai is higher. Based on the supply of gold in Chennai, the gold rate varies.