# Global Bullion Market Weakness Drags Down Gold Prices in Bengaluru, Chennai, and Hyderabad

> A combination of a stronger US dollar, rising Treasury yields, and prospects of higher interest rates has pushed gold rates down in major Southern Indian cities, even as domestic MCX trading remains closed today.

**Type:** article · **Category:** Market · **Published:** 2026-09-26 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/market/vaishvika-sarrapha-bajara-men-kamajori-se-bengaluru-chennai-aura-hyderabad-men-sone-ki-kimaton-men-giravata-38888 · **Language:** English
**Tags:** Gold Rate, MCX, Bengaluru, Chennai, Hyderabad, Bullion Market, Commodity Market

Gold prices in southern Indian cities including Bengaluru, Chennai, and Hyderabad have experienced a significant downward correction today. This downward trend is primarily a reflection of international market factors, where the global bullion market has shown pronounced weakness. Local retail rates are reacting directly to these international cues, leaving buyers in South India with lower price tags compared to earlier in the week.

 

## Global Economic Triggers Behind the Metal Slump

To understand why gold rates have slipped in southern metros, one must look at the broader global macroeconomic landscape. The international bullion market has faced strong headwinds as the US dollar continues to strengthen against major global currencies. Furthermore, market sentiment is heavily weighed down by increasing bets that the US Federal Reserve will maintain high interest rates for an extended period.

This expectation has pushed US Treasury yields to multi-decade highs, making non-yielding assets like gold less attractive to global investors. Additionally, geopolitical events have added volatility to the broader commodities sector. For instance, a Houthi attack on Saudi Arabia triggered a brief 3% spike in crude oil prices, which later eased as talks commenced between the US and Iran regarding the strategic Strait of Hormuz.

 

## Expert Analysis on Bullion Trends

According to insights from Prithviraj Kothari, the Managing Director of RiddiSiddhi Bullions Ltd., who also serves as the President of IBJA and Chairman of the Jain International Trade Organisation, both gold and silver are heading toward a weekly loss. He pointed out that hawkish signals from two Federal Reserve officials have led market participants to believe that further interest rate hikes are on the horizon. This sentiment shift is evident in the odds for a rate hike in December, which have surged to 71% from a previous estimate of 53%.

From a technical analysis perspective, Kothari highlighted that gold is currently maintaining its support base between the range of 4,250 to 4,450 (equivalent to Rs 150,000 to Rs 154,000). He noted that buying interest remains favorable as long as prices stay above the $4,300 threshold. On the other hand, silver is finding solid support in the 62.5 to 67.5 range (equivalent to Rs 230,000 to Rs 242,000), with buying preferred above the $64 mark, as both precious metals aim for their respective upper targets.

 

## Domestic Market Status and MCX Futures

Although active physical trading on the Multi Commodity Exchange (MCX) is suspended today, the futures market closing data reveals a clear picture of domestic investor sentiment. The gold futures contract set for delivery on October 5 ended its session in the red, slipping by 0.12% to settle at Rs 1,50,700 per 10 grams. This marginal decline reflects the broader pressure coming from international markets.

In contrast, silver futures for the December 4 expiry managed to buck the trend slightly, post-closing gains of 0.65% to trade at Rs 2,35,000 per kg. This divergence highlights the differing short-term dynamics between the two prominent metals, although both remain vulnerable to overarching global monetary policies.

 

## ICICI Direct Commodity Forecasts

Technical reports offer a detailed roadmap for future price action. A commodity market report from ICICI Direct indicates that the MCX Gold October contract is highly likely to establish firm support near the Rs 149,500 level. From there, analysts expect a healthy rebound that could drive prices back up toward the Rs 153,000 to Rs 154,000 range.

Similarly, the report projects that the MCX Silver December contract will successfully defend its support zone around Rs 230,000. Once this support is consolidated, silver prices are projected to bounce back, targeting levels between Rs 238,000 and Rs 240,000 per kg. Investors are closely monitoring these levels to timing their entries into the precious metals market amid ongoing global instability.

## What this means for you
The recent drop in gold prices offers a brief window of opportunity for retail buyers and investors across India to purchase precious metals at lower rates.

- **Across India:** Domestic consumers can expect slightly more affordable gold jewellery purchases ahead of upcoming festive and wedding seasons. This trend might encourage physical buying as a hedge against global economic uncertainties.

- **In Bengaluru:** Local buyers in the tech hub can take advantage of the current dip in 24k and 22k gold rates. They should monitor daily spot price changes at local showrooms before finalising big transactions.

- **In Chennai:** Retail consumers in Chennai will see immediate relief in gold coin and ornament prices today. This is an opportune moment for those who have planned long-term gold savings schemes.

- **In Hyderabad:** Jewellery shops in Hyderabad are likely to experience increased footfall due to the lower rate adjustments. Buyers should compare retail making charges to maximise their savings during this price correction.

## Why this happened
The decline in domestic gold prices is primarily driven by external macroeconomic factors that have weakened the global bullion market.

- **Stronger US Dollar:** A strengthening US dollar makes gold more expensive for holders of other currencies, which naturally dampens global demand. This has put downward pressure on international spot prices.

- **Prolonged High Interest Rates:** US Federal Reserve officials have hinted at further interest rate hikes, with market expectations for a December rate increase jumping to 71%. Higher interest rates raise the opportunity cost of holding non-yielding gold, causing investors to seek other assets.

- **Rising Treasury Yields:** US Treasury yields have hit multi-decade highs, steering capital away from safe-haven metals into bond markets. This shift has triggered a weekly loss for both gold and silver.

## Questions & Answers

### 1. Why did gold prices fall in Bengaluru, Chennai, and Hyderabad today?
The drop in gold prices is due to weakness in the global bullion market, driven by a stronger US dollar and high US interest rate expectations.

### 2. What was the closing price of MCX gold futures?
The gold futures contract for October 5 delivery closed 0.12% lower at Rs 1,50,700 per 10 grams.

### 3. Did silver prices also drop in the futures market?
No, silver futures for December 4 expiry actually rose by 0.65% to close at Rs 2,35,000 per kg.

### 4. What is the expected support level for MCX Gold according to ICICI Direct?
ICICI Direct expects MCX Gold October futures to find support near Rs 149,500 and potentially rebound to Rs 153,000 or Rs 154,000.

### 5. Why are US interest rate expectations impacting gold prices?
Hints of further Fed hikes have increased the odds of a December rate increase to 71%, which pushes US Treasury yields higher and reduces the appeal of non-yielding gold.

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