Gold Prices in Chennai Hit New Highs as Global Demand Surges
Gold prices in Chennai have surged to new highs, with 24-carat gold touching Rs. 11,880 per gram and 22-carat gold at Rs. 10,890 per gram. This follows a global trend as gold futures on the Multi Commodity Exchange (MCX) hit record peaks of Rs. 1,17,698 per kg for gold and Rs. 1,43,620 per kg for silver.
Analysts attribute this rally to several factors. The weakness of the US dollar has made gold cheaper for overseas buyers. Additionally, growing bets on further Federal Reserve rate cuts and uncertainty over Washington's funding have driven investors towards the safe-haven asset. Rahul Kalantri of Mehta Equities, referencing the international market and global factors, expects continued bullish momentum in gold. He anticipates support between $3,830 and $3,810 per troy ounce and resistance around $3,884 to $3,910 per troy ounce.
Traders advise retail investors to adopt a cautious accumulation approach, using corrective dips as opportunities to accumulate fresh long positions. Manoj Kumar Jain of Prithvifinmart echoes this sentiment. This approach has been successful in the past, with gold reaching new record levels on October 1 due to investor demand for safe-haven assets amid concerns about a potential US government shutdown.
Gold prices in Chennai have soared sharply, mirroring global upticks. With analysts predicting continued bullish momentum and traders advising a cautious accumulation approach, investors are urged to stay informed and strategic in their gold investments.
