Gold prices in Chennai surged sharply on Saturday, with the price of a sovereign (8 grams) rising to ₹1,04,000 — the highest level recorded this year.

The per-gram rate for 22-carat gold also climbed to ₹13,000, marking strong momentum in precious metals markets.

On Friday, gold was priced at ₹1,03,120 per sovereign and ₹12,890 per gram, demonstrating the persistent upward trend over recent days. The rally is widely driven by global economic cues, notably expectations of further rate cuts by the U.S. Federal Reserve, which have weakened the dollar and bolstered safe-haven demand for bullion. A softer rupee has additionally supported domestic price increases.

Since the start of 2025, gold prices have climbed dramatically: from ₹57,200 per sovereign on January 1 to ₹1,04,000 by late December — an increase of almost 82% year-to-date.

Silver has also reached new highs, with a record price of ₹274 per gram (₹2,74,000 per kilogram) reported on Saturday.

Bullion traders say the run-up in both gold and silver reflects heightened investor interest in precious metals amid ongoing global economic uncertainty. This could keep prices elevated through the year-end and into early 2026, though market analysts caution that volatility may continue depending on global financial developments. Further gains may occur if safe-haven demand persists, but any strengthening in the rupee or shifts in U.S. monetary policy could temper the rally.