Gold prices experienced a significant rally on Wednesday, May 6, with 24 karat gold reaching ₹15,328 per gram in Chennai and ₹15,131 per gram in Hyderabad. According to Goodreturns data at 12:15 pm, the price of 24 karat gold in Chennai increased by ₹251 per gram, while Hyderabad saw a jump of ₹213 per gram. The surge was accompanied by similar gains in silver prices, with Chennai silver rates reaching ₹270 per gram and ₹2,70,000 per kilogram. As reported by Goodreturns, this represents a major reversal in the precious metal's recent trend.
The price movements across different karat variations showed consistent upward momentum. In Chennai, 22 karat gold surged by ₹230 per gram to ₹14,050 per gram, while 18 karat gold rallied by ₹190 per gram to ₹11,720 per gram. Similarly, Hyderabad witnessed 22 karat gold skyrocketing by ₹195 per gram to ₹13,870 per gram, and 18 karat gold increasing by ₹159 per gram to ₹11,348 per gram. According to Goodreturns data, these rates were recorded at 12:15 pm on Wednesday, May 6.
The surge in domestic gold prices was driven by international market developments, as reported by Gaurav Garg, research analyst at Lemonn markets desk. International gold is trading at $4,666.00 per ounce, translating to approximately ₹1,42,542 per 10 grams, while silver has jumped to $76.17 per ounce, or around ₹2,32,676 per kilogram. The rally was attributed to a weaker dollar and easing crude oil prices amid speculation around potential US-Iran peace talks. As explained by Gaurav Garg, the recent decline in crude oil prices, now at $100.50 per barrel (about ₹9,549), has alleviated some inflationary pressures, prompting investors to flock to safe-haven assets like gold and silver.
The sharp revival in Chennai and Hyderabad gold rates has diminished hopes of further correction in the precious metal, according to Goodreturns. As gold jewellery buyers closely track price movements on a daily basis, this significant jump represents a major shift in the market dynamics. The substantial increase across all karat variations and cities indicates broad-based strength in the gold market, with the international bullion market regaining strength amid geopolitical developments that continue to support safe-haven demand for precious metals. The state's affinity for gold reflects deep-rooted traditions and rituals, with gold holding immense cultural significance in Andhra Pradesh beyond being just a fashion statement.
