Across India’s major metropolitan hubs, a slight disparity in gold pricing remains evident, with certain regions demanding a premium. In Chennai, the market remains notably expensive; 24-karat gold is priced at ₹15,600 per gram, 22-karat at ₹14,300 per gram, and 18-karat at ₹11,855 per gram. When calculated for 10 grams, these rates stand at ₹1,56,000, ₹1,43,000, and ₹1,18,550 respectively. In contrast, Delhi saw 24-karat gold prices drop to ₹1,55,430 per 10 grams, while 22-karat gold reached ₹1,42,490. Cities including Mumbai, Kolkata, Bengaluru, Hyderabad, Kerala, and Pune reported uniform rates of ₹1,55,290 for 24-karat and ₹1,42,350 for 22-karat, with the third category 18-karat gold priced at ₹1,16,470 per 10 grams.
The regional price fluctuations extend to Gujarat and North India, where Vadodara and Ahmedabad recorded ₹1,55,340 for 24-karat and ₹1,42,400 for 22-karat gold. In Jaipur and Lucknow, the 24-karat rate hovered at ₹1,55,440, with 22-karat gold at ₹1,42,500. Silver also mirrored this localized pricing trend; in Delhi, silver fell by ₹100 to trade at ₹2,74,900 per kilogram, a rate consistent with Mumbai and Kolkata. However, Chennai maintained its position as the costliest market, with silver priced at a premium of ₹2,79,900 per kilogram. These variations are largely attributed to local taxes, making charges, and specific demand-supply dynamics.
Expert analysis points toward a grim geopolitical landscape as the primary driver for this market cooling. Saumil Gandhi, Senior Analyst at HDFC Securities, noted that gold's weak start is rooted in shifting macroeconomic conditions and deteriorating stability around the Strait of Hormuz. Following Iran's implementation of strict controls and the subsequent seizure of an Iranian cargo ship by the United States, concerns regarding the stability of recent ceasefires have escalated. This friction has stoked fears of rising energy costs and inflation, strengthening the US Dollar and exerting immense pressure on precious metals.
Adding to this cautious sentiment, Kaynat Chainwala of Kotak Securities highlighted that investors are closely monitoring critical US data, including retail sales, home sales, weekly unemployment claims, and consumer sentiment. Market participants are particularly focused onthe upcoming testimony of Federal Reserve Chairman-designate Kevin Warsh on Tuesday, seeking cues on future monetary policy and inflation strategies. Chainwala emphasized that the escalating US-Iran tensions remain the most significant factor; should the situation deteriorate further, the downward pressure on gold and silver prices is expected to intensify significantly.
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