Chennai: After a few days of fluctuations, gold prices in the city witnessed a sudden and significant spike this week, leaving investors and consumers anxious about the market’s trajectory. The price of 22-carat jewellery gold surged by approximately ₹400 per gram over just two days, breaking a weeks-long trend of minimal fluctuation where prices would rise one day only to fall the next.
This sharp increase has sparked concerns among the public about a return to a phase of rapid, lightning-fast price appreciation. However, renowned economist Anand Srinivasan has stepped in with a calming analysis, suggesting that the conditions for a sustained bull run are not currently in place.
Analysing the Sudden Jump in Gold Rates
The recent volatility took many by surprise. Economist Anand Srinivasan, in a post on his YouTube channel, clarified the reasons behind this sudden jump. He noted that the price of gold rose by 2% in a single day, pushing 22-carat gold to ₹11,700 and 18-carat gold to ₹9,750. He attributed this surge primarily to international factors, specifically positive developments in the United States.
Srinivasan explained that the US government showed signs of recovering from a potential shutdown, with eight opposition Democratic Party MPs switching sides to vote with the ruling Republicans. This news triggered tremendous joy in the financial markets, leading to a rally in the US stock market and a parallel rise in global gold prices, which subsequently influenced the Indian market.
Will Gold Prices Continue to Rise in the Coming Weeks?
A key question on everyone’s mind is whether this surge is the beginning of a larger upward trend. Many are wondering if they should buy gold now before prices climb further. On this, Anand Srinivasan offers a tempered outlook. He directly counters the speculation of a major price explosion, stating, “the gold price will not go up at all now.”
He emphasizes that the future of gold prices is heavily dependent on the stance of the US Federal Reserve. According to his analysis, a rapid price increase would only occur if there is significant political pressure, such as former President Trump attacking the Fed and prompting action. In the absence of such a dramatic trigger, he expects prices to remain contained.
The Key Factor: What to Expect from the US Federal Reserve
Looking ahead to the next month, Srinivasan points to a critical event: the US Federal Reserve meeting scheduled for December. He indicates that this meeting will be a major determinant of gold’s short-term fate. Should the Fed make negative comments regarding interest rate cuts, the price of gold is likely to fall. Consequently, he predicts that the gold market will experience similar fluctuations until December, without a clear, sustained direction.
His advice to consumers is to avoid panic buying. He recommends that people should only buy gold in bulk if there is a genuine need. Otherwise, in the current climate, it would be wiser to purchase gold little by little, adopting a phased investment approach.
Gold Rate in Chennai Today
As of today, November 12, 2025, the gold rates in Chennai reflect this recent increase. The price for 24-carat gold stands at ₹12,765 per gram, while 22-carat gold is priced at ₹11,701 per gram. For 18-carat gold, the rate is ₹9,751 per gram. Overall, the Chennai gold market has witnessed a steady trend for most of the year, with demand predominantly driven by jewellery purchases rather than investment in biscuits and coins.