KKN Gurugram Desk | Gold and silver prices are important indicators of economic trends, and their fluctuation directly impacts the financial decisions of investors and individuals alike. In India, gold and silver prices are affected by multiple factors, including global demand, inflation, and government policies. In this article, we will look at the latest gold and silver price updates, including fluctuations over the past week and month, as well as regional variations in major southern cities.

Price Fluctuations of Gold and Silver Over the Last Week and Month

The price of gold and silver has seen notable fluctuations recently. Over the past week, the price of 24-carat gold in India recorded a decrease of 2.44%, signaling a dip in value. When looking at the price change over the last month, gold prices have fallen by 4.02%. This shows a clear downward trend in the price of the precious metal, which could be attributed to various market forces such as global economic factors and currency changes.

Similarly, silver prices in India are also seeing a slight dip. The current price of silver stands at ₹105,900 per kilogram, reflecting a decrease of ₹100 per kilogram compared to previous rates. The decline in silver prices follows a broader trend seen in precious metals, with fluctuations being common in markets around the world.

Gold Rates and Silver Prices in Southern Cities of India

Southern cities in India play a significant role in the country’s gold and silver market. The demand for gold is high in regions like Chennai, Hyderabad, Bengaluru, and others, making these cities essential hubs for tracking price trends in precious metals. Let’s look at the latest gold and silver price updates in the southern cities.

Top 5 South Cities for Gold Rates in India

Here is a brief overview of the gold prices in some of the top southern cities of India:

1. Chennai

2. Hyderabad

3. Bengaluru

4. Kochi

5. Madurai

The gold rates in these cities vary slightly depending on local demand, regional preferences, and other economic factors. Among these cities, Chennai consistently stands out as one of the major centers for gold trading.

Gold Rate in Chennai

Chennai, the capital of Tamil Nadu, is one of the largest gold markets in India. On March 18, 2025, the gold price in Chennai stands at ₹89,571 per 10 grams. This represents a small decrease from the previous day’s rate of ₹89,691 per 10 grams, recorded on March 17, 2025. Over the past week, gold prices in Chennai have experienced an increase from ₹87,501 per 10 grams recorded on March 12, 2025.

The fluctuation in gold prices in Chennai reflects the broader market trends of price adjustments seen in the country. These price changes are influenced by factors such as shifts in global gold prices, local demand, and the value of the Indian rupee. Chennai remains one of the most significant centers for gold trading in southern India, and the prices here often serve as an indicator for nearby regions.

Other Southern Cities and Their Gold Prices

While Chennai’s gold prices are among the most competitive in the south, other cities in the region also have notable price fluctuations:

1. Hyderabad: The gold rate in Hyderabad is closely tied to Chennai’s pricing, with minor regional differences. Gold prices in the city often follow the same trends seen in Chennai.

2. Bengaluru: Bengaluru, Karnataka’s capital, is another major gold hub. The gold rates here are typically slightly higher due to local demand, which influences prices in the city.

3. Kochi: Kochi, in Kerala, is also known for its robust gold market. The city’s gold rates fluctuate based on demand from both local consumers and those buying gold for investment purposes.

4. Madurai: In Madurai, a city known for its rich cultural heritage, gold rates can also see fluctuations depending on the festive seasons, where demand rises significantly.

In all these cities, gold remains one of the preferred choices for long-term investment, especially in southern India, where the culture of purchasing gold for weddings, festivals, and investments is deeply rooted.

Key Factors Influencing Gold and Silver Prices

Several factors contribute to the fluctuation in gold and silver prices. Let’s explore some of the most significant influences on precious metal pricing.

1. Global Economic Conditions

The global economy plays a crucial role in determining the price of precious metals. Economic instability, inflation, or deflation can push investors toward gold as a safe haven. This trend often results in a rise in gold prices.

2. Currency Value

The value of the Indian Rupee (INR) against major currencies like the US Dollar is another critical factor. A weaker rupee tends to push up the prices of gold and silver, as they are typically priced in USD.

3. Government Policies

Government policies, such as import duties on gold, also influence prices. Any changes in taxes or duties can either increase or decrease the cost of purchasing gold and silver in India.

4. Demand from the Jewelry Sector

India is one of the largest consumers of gold, primarily for jewelry. Seasonal spikes in demand, such as during festivals or wedding seasons, can lead to price hikes. The festive season often drives up the prices of both gold and silver.

5. Interest Rates

Central banks around the world, particularly the Reserve Bank of India (RBI), set interest rates that can affect gold prices. Lower interest rates often make gold a more attractive investment compared to traditional savings accounts or fixed deposits, which may lead to a rise in gold demand and its prices.

The Impact of Silver Prices in India

While gold often takes the spotlight, silver is also an essential precious metal with its own market. Silver is widely used in industries like electronics, photography, and jewelry. Its price movement is somewhat correlated with gold, but it tends to experience higher volatility. The current price of silver in India, as of March 18, 2025, is ₹105,900 per kilogram. The slight dip in silver prices over the last week is reflective of the broader precious metals market trend.

India’s silver demand often rises during festivals and wedding seasons, just like gold. While silver is more affordable than gold, it is still considered a valuable commodity for both investment and traditional uses.

Tips for Investing in Gold and Silver

Investing in gold and silver can be a safe and profitable long-term strategy. However, it is essential to be aware of the market fluctuations. Here are a few tips for investing in gold and silver in India:

1. Buy Gold During a Price Dip: If you’re considering investing in gold, it’s best to buy during price dips. This allows you to acquire more gold at a lower cost.

2. Diversify Your Investments: Don’t put all your investment into one asset. A mix of gold, silver, stocks, and bonds can protect your portfolio from market volatility.

3. Monitor Global Trends: Keep an eye on global economic conditions, as they directly affect gold and silver prices.

4. Physical vs. Digital Gold: Choose between buying physical gold, such as coins or jewelry, or digital gold, which allows for easier storage and liquidity.

5. Stay Informed About Local Gold Rates: Prices of gold and silver can vary from one region to another, so staying informed about local rates can help you make better purchasing decisions.

Gold and silver remain important investment options in India, especially in southern cities like Chennai, Hyderabad, Bengaluru, and Kochi. With the current fluctuations in gold and silver prices, investors need to stay updated and make informed decisions. The trends in gold prices, like the recent decrease over the past week and month, can present opportunities for strategic investments. Whether you are a long-term investor or a jewelry buyer, understanding the factors influencing precious metal prices can help you make smarter decisions in the market.