Gold buyers in Chennai received a surprise “discount” today as prices for the precious metal dropped significantly. The price of 22-carat gold fell by ₹2,160 per sovereign, bringing the rate down to ₹1,14,400. On a per-gram basis, the price decreased by ₹270, settling at ₹14,300. This sudden dip comes after several days of record-breaking highs that had pushed the metal toward the ₹1.2 lakh mark.
Market analysts attribute this sharp decline to the U.S. Federal Reserve’s decision to hold interest rates steady at 3.5–3.75%. The Fed’s cautious stance on inflation, combined with a strengthening U.S. dollar, has momentarily dampened the global demand for gold as a “safe-haven” asset. Additionally, silver prices in Chennai also saw a reduction, dropping by ₹10 to reach ₹265 per gram.
Despite today’s drop, gold remains significantly more expensive than it was this time last year, showing an overall increase of nearly 72% since March 2025. Local jewelers in T. Nagar and Cathedral Road reported a slight uptick in footfall today as savvy customers looked to take advantage of the price correction before the upcoming wedding season.