# Gold Prices Plunge Sharply by Rs. 14,700 in Chennai and Hyderabad

> Gold rates witnessed a sharp decline across Chennai and Hyderabad on August 31, with 100 grams of 24-carat gold dropping by Rs. 14,700.

**Type:** article · **Category:** Money · **Published:** 2026-08-31 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/money/gold-prices-plunge-sharply-by-rs-14-700-in-chennai-and-hyderabad-24953 · **Language:** English
**Tags:** gold rate, chennai gold price, mcx gold, commodity market, gold price drop, hyderabad gold

Precious metals experienced heavy selling pressure during early trade on Monday morning across major commodity exchanges. Gold futures dropped by 1.31%, while silver futures slipped 0.76% amid a broader market downturn. Investors and traders closely monitored the substantial downward correction as safe-haven assets faced renewed downward momentum.

## Major City-Wise Price Revisions
In Chennai, the price for 100 grams of 24-carat gold settled at Rs. 15,67,700 following a significant reduction of Rs. 14,700. Similarly, 22-carat gold in Chennai decreased by Rs. 13,500, bringing its total cost to Rs. 14,37,000. Regional buyers in Hyderabad and surrounding markets observed identical downward adjustments across various purity brackets.

## Multi Commodity Exchange Performance
Trading on the Multi Commodity Exchange reflected persistent selling pressure on Monday morning for both bullion assets. The MCX Gold October 5th futures contract declined by Rs. 1,854 or 1.19%, trading at Rs. 1,54,427 per 10 grams. Concurrently, the MCX Silver September 4th futures contract fell by Rs. 1,304 or 0.55%, reaching Rs. 2,53,153 per kg.

## Global Cues and Federal Reserve Remarks
Spot gold tumbled sharply following hawkish comments delivered by Fed Chair Kevin Warsh during his Jackson Hole address. According to Trading Economics, spot gold was trading down by 0.46% at $432.49 per ounce. Kedia Advisory's latest bullion report indicated a projected intraday trading range of 153300 to 161850 for gold, suggesting further cautious movement.

## Domestic Demand and US Economic Data
Analysts noted that bullion prices retreated as market participants increased bets on potential interest rate hikes driven by inflation concerns. Furthermore, revised US employment data revealed that the economy added 79,000 fewer jobs during the 12 months leading up to March 2026. Within domestic markets in India, gold discounts widened to their deepest level in three months as retail demand weakened notably.

## What this means for you
The significant drop in bullion prices will directly influence retail buyers, commodities investors, and local jewellery merchants.

- **Across India:** Lower domestic gold rates provide immediate financial relief to retail consumers looking to purchase physical gold ahead of upcoming festive periods.
- **In Chennai and Hyderabad:** Substantial cuts of up to Rs. 14,700 on 100 grams make physical gold acquisitions notably more affordable for local buyers in these regions.
- **For Investors:** Participants trading futures contracts on the MCX must closely monitor volatility limits and risk parameters amid ongoing market corrections.
- **Retail Buying:** Widening domestic discounts allow buyers visiting local bullion dealers to negotiate more favorable pricing structures.
- **Global Trends:** Evolving monetary policy expectations from major central banks continue to shape broader portfolio strategies for institutional participants.

## Questions & Answers

### 1. How much did 100 grams of 24-carat gold drop in Chennai?
The price of 100 grams of 24-carat gold in Chennai declined by Rs. 14,700.

### 2. What is the updated price for 22-carat gold in Chennai?
The price of 22-carat gold in Chennai decreased by Rs. 13,500 to cost Rs. 14,37,000.

### 3. What was the decline registered in MCX Gold October futures?
MCX Gold October 5th futures fell by Rs. 1,854 or 1.19%.

### 4. What triggered the sharp fall in spot gold prices?
Spot gold fell sharply following hawkish remarks by Fed Chair Kevin Warsh at his Jackson Hole address.

### 5. Where did MCX Silver September futures settle?
MCX Silver September 4th futures crashed by Rs. 1,304 to Rs. 2,53,153 per kg.

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