# Southern Indian Metros Witness Sharp Gold Price Drop as Bullion Faces Heavy Selling

> Gold prices in major southern Indian cities recorded a sharp single-day tumble right ahead of the festive season, dropping up to Rs 25,600 per 100 grams. Rising US Treasury yields and a robust dollar triggered heavy bullion selling across domestic and international markets.

**Type:** article · **Category:** Money · **Published:** 2026-09-29 · **Source:** TrendKia
**Canonical:** https://trendkia.com/en/money/dakshina-bharata-ke-shaharon-men-sone-ke-damon-men-bhari-giravata-chennai-aura-bangalore-men-tute-bhava-40098 · **Language:** English
**Tags:** Gold Price, Gold Rates Today, Chennai Bullion, Bangalore Gold Price, Hyderabad Gold Price, Commodity Market, US Treasury Yields

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.

## What this means for you
A sudden slump in bullion values right before the festive month significantly eases budgets for retail jewelry shoppers.

- **Across India:** Broad selling across international commodity exchanges has triggered downward revisions in gold rates nationwide. Households organizing purchases for upcoming festivities and weddings will encounter lower per-gram acquisition costs.
- **In Southern Metros:** Consumers across Chennai, Bangalore, and Hyderabad gain immediate relief exceeding Rs 2,500 per 10 grams of 24-carat metal. Local shoppers can leverage these reduced rates for jewelry advance bookings and physical purchases.
- **For Jewelry Shoppers:** The 22-carat gold bracket dropped by over Rs 23,000 per 100 grams in these trading centers. Shoppers purchasing bridal sets or substantial ornaments will see outright cost reductions on final billing.
- **For Precious Metal Investors:** With the US 10-year yield breaching 5.22%, bullion prices could face continued near-term volatility. Investors in sovereign gold assets or exchange-traded bullion instruments can consider staggered accumulation at lower trading ranges.

## Why this happened
The sudden drop in bullion prices was primarily catalyzed by surging US Treasury yields and sustained strength in the US dollar across global financial platforms.

- **Surge in US Treasury Yields:** The benchmark US 10-year Treasury yield advanced above the 5.22% threshold. Higher bond yields inflate the opportunity cost of holding non-interest-bearing physical assets like gold.
- **Dollar Strength Spurring Sell-offs:** A firming US dollar created headwind pressures on international commodities, prompting swift liquidations. Consequently, international bullion dropped roughly $130 to hover near $4,155 per ounce.
- **Expectations of Prolonged High Interest Rates:** Elevated yields reinforced market consensus that borrowing rates will remain higher for longer. Institutional allocators subsequently shifted capital away from safe-haven metals into yield-bearing sovereign debt securities.

## Questions & Answers

### 1. What was the rate of 24-carat gold in Chennai on September 28, 2026?
In Chennai, 24-carat gold dropped by Rs 2,560 to Rs 1,50,170 per 10 grams and slid by Rs 25,600 to Rs 15,01,700 per 100 grams.

### 2. How much did 22-carat gold drop in Bangalore and Hyderabad?
In both Bangalore and Hyderabad, 22-carat gold declined by Rs 2,300 to Rs 1,37,650 per 10 grams and plunged Rs 23,000 to Rs 13,76,500 per 100 grams.

### 3. What were the updated prices for 18-carat gold in Chennai?
Chennai recorded an 18-carat gold price of Rs 1,15,350 per 10 grams after a Rs 2,350 drop, and Rs 11,53,500 per 100 grams after declining Rs 23,500.

### 4. What global factors triggered the heavy sell-off in gold?
A rise in the US 10-year Treasury yield above 5.22%, along with dollar resilience and higher-for-longer interest rate prospects, drove bullion selling.

### 5. What is the expected trading range for COMEX gold?
According to market analysis, COMEX gold is expected to fluctuate within an estimated band of $4,080 to $4,250 per ounce.

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