Ahead of the upcoming festive month, gold prices across southern Indian trade hubs witnessed a substantial slump on Monday, September 28, 2026. Major metropolitan centers including Chennai, Bangalore, and Hyderabad registered steep single-day downward adjustments across all popular purity brackets, bringing immediate relief to retail jewelry buyers and market participants.
Chennai Records the Deepest Price Correction
Among all southern centers, Chennai registered the most dramatic single-session dive in gold rates. The cost of 24-carat gold plummeted by Rs 25,600 per 100 grams, settling down to Rs 15,01,700. For the standard 10-gram denomination, the pure metal declined by Rs 2,560 to stand at Rs 1,50,170.
A similar contraction played out across lower purity categories used heavily in retail jewelry. In the 22-carat segment, Chennai rates dropped by Rs 23,500 per 100 grams to reach Rs 13,76,500. On a 10-gram basis, this reflected a reduction of Rs 2,350, settling at Rs 1,37,650. For 18-carat gold, prices shrank by Rs 23,500 for a 100-gram lot to rest at Rs 11,53,500, while the 10-gram price retreated by Rs 2,350 to trade at Rs 1,15,350 on Monday.
Bangalore and Hyderabad Mirror Parallel Declines
Physical jewelry markets in Bangalore and Hyderabad tracked almost identical trajectories during the session. In both commercial hubs, 24-carat gold slumped by Rs 25,100 per 100 grams to match the Rs 15,01,700 benchmark. On the 10-gram scale, 24-carat prices declined by Rs 2,510 to touch Rs 1,50,170.
In the popular 22-carat jewelry bracket, rates tumbled by Rs 23,000 per 100 grams to settle at Rs 13,76,500 across Bangalore and Hyderabad. The corresponding 10-gram value tumbled by Rs 2,300 to Rs 1,37,650. Meanwhile, 18-carat gold dropped by Rs 18,800 per 100 grams to Rs 11,26,300, which amounted to a per-10-gram slip of Rs 1,880 down to Rs 1,12,630.
Surging US Yields and Dollar Strength Dampen Bullion Demand
The precipitous domestic markdown tracks broad weakness across worldwide commodity exchanges. According to Jateen Trivedi, VP Research Analyst - Commodity and Currency at LKP Securities, bullion faced intensive selling pressure as international spot values shed around $130 to hover near $4,155, weighed down by dollar resilience and advancing US Treasury yields.
The benchmark US 10-year Treasury yield advanced beyond 5.22%, amplifying market expectations that central banks will maintain a higher-for-longer monetary stance. Because physical bullion yields no periodic coupon or interest, elevated bond yields raise the opportunity cost of holding non-yielding precious metals. Consequently, institutional demand has shifted toward yield-bearing sovereign paper, keeping international COMEX gold trade boxed within an estimated bandwidth of $4,080 to $4,250.
