Ahead of the festive season, the cost of gold has been spiralling for a few days and proving to be a dampener for shoppers in Chennai.
One gram of 22-carat gold was priced at Rs.2,553 on Saturday. This made a sovereign, which comprises eight grams of gold, costlier by nearly Rs.50 than on Friday. The price of the precious metal has been on the rise since the first week of October.
Jewellers say that the volatile trend in the gold price has reflected on silver too. One gram of silver was priced at Rs.40.50. The fluctuations in the United States economy and the increase in international gold prices has impacted the domestic market.
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According to N. Ananthapadmanabhan, south region chairman of the All India Gems and Jewellery Trade Federation (AIGJTF), the price will continue to fluctuate till the end of the year and there may be not be much decrease. “The rise in prices has kept many customers away from showrooms,” he said.