Gold prices rise in Chennai on Friday

The rebound came after a drop of Rs 1,000 per sovereign on Thursday, following another fall on Friday and a period of alternating gains and losses. That kind of whipsawing is important for buyers timing wedding and festival purchases, while it also affects inventory decisions for jewellery retailers and bullion traders.

Globally, the backdrop remains supportive for gold. The U.S. 10-year Treasury yield is around 4.827%, while the 2-year/10-year spread has narrowed to 0.39 percentage point, conditions that often keep investors alert to growth worries and shifts in rate expectations. Spot gold, tracked by GLD, closed at $400.97 on Friday and U.S.-listed bullion proxies remain above their 50-day averages even as momentum cools.

Adalytica’s Gold Fear & Greed Index shows sentiment at 31, labeled neutral, but awareness remains in “extreme fear,” suggesting the rally is being driven more by caution than exuberance. Silver was unchanged at Rs 255 a gram, or Rs 2.55 lakh a kilogram, leaving gold as the main driver for precious-metals pricing today.

For investors, the key question is whether the rebound extends beyond a one-day move. The next catalyst is whether U.S. yields and the dollar continue to ease, which would typically support bullion, or whether a stronger greenback and firmer rates cap the advance.