Gold prices in Chennai witnessed a sharp correction on Friday, January 30, in line with the broader sell-off seen in domestic and global bullion markets. The decline follows profit booking after gold touched record highs earlier this week, coupled with weakness in international prices.
Gold rates in Chennai today (per gram)
- 24K gold: ₹17,673
- 22K gold: ₹16,200
- 18K gold: ₹13,500
Compared with the previous session, gold prices across all purity levels are lower, reflecting the sharp pullback in MCX gold futures.
Why gold prices are down today
MCX gold corrects after record highs
Gold and silver prices witnessed a sharp correction on the Multi Commodity Exchange (MCX) on Friday after hitting record highs earlier this week. Gold futures fell over 4%, while silver futures slipped more than 5%, dragging down domestic spot prices, including those in Chennai.
Global profit booking after record run-up
The primary trigger behind the fall is aggressive profit booking. Gold had surged to historic peaks globally and in India over the past few sessions. After such a steep and near-vertical rally, investors and traders moved swiftly to lock in gains, leading to heavy selling pressure across spot and futures markets.
Stronger dollar weighs on gold
The US dollar rebounded from recent lows after stabilising following the Federal Reserve’s policy decision. A firmer dollar typically pressures gold, as the metal is priced in dollars and becomes less attractive for non-US investors. This dollar rebound coincided with the sharp correction in bullion prices.
Spillover from global markets
Internationally, spot gold fell around 3.3%, failing to sustain record levels, while silver dropped about 4.4%, according to ICE data. The weakness in global prices spilled over into Indian markets, with the MCX reaction proving sharper due to elevated domestic premiums.
Compression of India premium
Indian gold prices had been trading at unusually high premiums compared with global benchmarks. As international prices cooled, this premium began to compress rapidly, amplifying the downside move in domestic markets such as Chennai.
What Chennai buyers should know
The fall in gold prices reflects short-term market adjustments and profit taking, rather than a change in long-term demand fundamentals. Prices may remain volatile in the near term, tracking global cues, currency movements, and positioning in futures markets.
Disclaimer: Gold rates are indicative and do not include GST, TCS, or making charges. Actual prices may vary across jewellers in Chennai.
