Chennai: For the first time, price of gold touched a new high in the city today- Rs 3,129 per gram and Rs 25,032 per sovereign (eight grams).
“The gold rate touched Rs 25,032 per sovereign today and this is the first time in the history of 75 years,” says general secretary, Madras Jewellers’ and Diamond Merchant Association, S Shanta Kumar.
Talking about the hike, Shanta Kumar says, “In the last three years, the gold rate graph was fluctuating. Once it reached very close to Rs 3,000. However, in the last seven months, the graph was steadily increasing and today the rate marked the history.”
He informs that the hike is mainly due to fall in dollar’s value. “Internationally, the gold price is fixed by the members of LBMA (London Bullion Market Association). The recent depreciation of dollar’s value made the investors to play safe game by investing more in the gold. This has increased the demand for gold,” he adds.
“After China we are the second country to import high amount of gold bars. As far as city is concerned, there is no much difference in the footfalls. In fact, as the muhurtham dates are lining up, people continue to buy gold in large amount. However, we cannot expect the price to go down for the next few weeks,” Shanta Kumar states. Another jeweller said the trend will continue and gold rates can be expected to increase in the days to come.