Gold Prices Fall by ₹6,560 per Sovereign in 13 Days; Expert Predicts Stability Before a Possible Rally

Gold prices in Chennai have declined significantly over the past 13 days, offering potential opportunities for jewellery buyers and gold investors. After reaching a peak of ₹1,34,000 per sovereign in January, gold prices have experienced considerable volatility. Market factors, including US tax policy announcements, geopolitical tensions in the Middle East and rising crude oil prices, contributed to the earlier surge in gold and silver prices.

On the 10th of this month, gold was priced at ₹1,11,040 per sovereign. Since then, prices have continued to fall. In the latest decline, the price of gold dropped by ₹175 per gram to ₹13,060, while the price per sovereign fell by ₹1,400 to ₹1,04,480. Overall, Chennai`s gold jewellery price has decreased by ₹6,560 per sovereign over the past 13 days.

Gold Price Forecast: Will Prices Fall Below ₹1 Lakh?

Jayantilal Chalani, President of the Gold and Jewellery Merchants` Association, expects gold prices to remain relatively stable over the next month following their recent decline.

According to Chalani, a further sharp fall below ₹1,00,000 per sovereign is unlikely. He expects prices to remain comparatively low through October and the third week of November. However, he anticipates that gold could reach new highs by the end of 2026 or by March next year.

Chalani also described the current decline as an unusual market movement, estimating that gold prices have fallen by nearly 28%. He believes the current price levels could provide an opportunity for those planning to purchase gold. However, he cautioned that if prices begin rising again, the recovery could be rapid.

Investors should remember that gold prices are influenced by global economic conditions, currency movements, interest rates and geopolitical developments. Forecasts are not guarantees, and prices may change unexpectedly.

Silver Prices Remain Unchanged

While gold prices have declined, silver prices have remained unchanged at ₹225 per gram. Silver bars are currently priced at ₹2,25,000 per kilogram, according to the figures provided.

The domestic silver market has experienced supply constraints in recent months, contributing to a significant increase in prices. The central government had previously introduced measures to regulate gold and silver imports to ease pressure on foreign exchange reserves and support the rupee.

Centre Approves Import of 6,500 Tonnes of Silver

In a move aimed at addressing festive-season requirements, the central government has authorised the import of 6,500 metric tonnes of silver over the next six months.

Previously, restrictions were introduced in May and June to regulate silver imports, making prior official authorisation mandatory. The latest decision comes as jewellery purchases and investment demand shape the domestic silver market.

The expanded import quota has surprised some traders, particularly because domestic demand for silver jewellery and investment products has reportedly remained relatively subdued.

Importers believe the increased availability of silver could ease supply constraints and help bring down prices in the domestic market. However, the actual impact will depend on import volumes, global prices, currency movements and demand during the festive season.

Is s This the Right Time to Invest in Gold?

The recent correction may attract buyers who were waiting for lower prices. Jewellery purchasers could benefit from the reduced cost per sovereign, while long-term investors may view the decline as an opportunity to review their allocation to gold.

Nevertheless, a lower price does not guarantee immediate gains. Investors should consider their financial goals, investment horizon and risk tolerance before making a decision. Those purchasing jewellery should also account for making charges and applicable taxes when comparing prices.

With an expert predicting relative stability in the near term and a possible rally later, gold and silver markets are likely to remain in focus through the festive season and into 2027.

Note: The price figures and market forecasts in this article are based on the information provided and have not been independently verified.