Chennai, June 11, 2026, 14:01 (IST)
- On Thursday, 22-carat jewellery gold in Chennai dropped ₹300 per gram to settle at ₹13,500. That sent the price for one sovereign—eight grams—down by ₹2,400 to ₹1,08,000.
- Gold fell ₹5,600 per sovereign across two sessions. Silver stayed flat at ₹260 per gram and ₹2.60 lakh per kg.
- Gold prices dropped to levels not seen in six months, tracking a global slide. Traders kept their focus on U.S. inflation data and clues from the Federal Reserve on rates.
Chennai’s gold prices tumbled again Thursday. The 22-carat jewellery rate hit ₹13,500 a gram, sovereigns landed at ₹1,08,000, down ₹2,400 for eight grams. Dinamani matched the numbers, noting a two-day plunge of ₹5,600 per sovereign.
This shift pulls Chennai’s retail price back under ₹1.10 lakh, reversing a stretch of sharp moves: ₹1,12,560 on June 8, then ₹1,13,600 on June 9, and ₹1,10,400 as of Wednesday. The term “sovereign”—or pavun, as it’s known in Tamil Nadu—refers to the local eight-gram unit favored by jewelry shoppers. Dinamani
The prospect of the sovereign slipping under ₹1 lakh is back in focus across Tamil gold coverage. That’s a potential ₹8,000 slide from the current ₹1,08,000 per sovereign. Thanthi TV zeroed in on this Thursday, bringing Jayantilal Challani into the conversation and highlighting the phrase “right time to buy gold” in its headline. Thanthi TV
The Jewellers and Diamond Traders’ Association, Madras, posted rates of ₹13,500 per gram for 22-carat gold and ₹260 per gram for silver, according to its rate page. Sri Jayantilal Challani is named as president on the association’s website.
Pressure wasn’t limited to domestic markets. The Multi Commodity Exchange (MCX) saw August gold futures slip ₹1,573, or about 1%, landing at ₹1,46,444 per 10 grams Thursday morning. Silver futures for July tracked even steeper losses, tumbling ₹5,012, or 2%, to ₹2,30,492 per kg, according to .
Spot gold climbed 0.7% to $4,103.74 an ounce in the international market as of 0741 GMT, Reuters said. The metal had earlier slipped to $4,022.09, its weakest since Nov. 21. Matt Simpson, senior analyst at StoneX, called $4,000 “an obvious level of support,” noting some traders might cash in profits or look to buy the dip. Reuters
Driving the move is the rate outlook. According to the U.S. Bureau of Labor Statistics, consumer prices climbed 4.2% year-over-year through May. Energy made up over 60% of the month’s gain. Higher interest rates tend to weigh on gold—there’s no yield in holding bullion—even if it’s often pitched as an inflation hedge.
Silver sent out mixed signals. Retail prices in Chennai held steady at ₹260 per gram, according to Dinamani and ET Tamil, but MCX silver futures saw a sharp decline. Globally, spot silver was up 1.1% as reported by Reuters, with platinum advancing 0.8% and palladium jumping 2.9%. The metals market, clearly, refused to move in sync.
The drop might prove short-lived. Gold recovered after touching a six-month trough, according to Reuters, with traders eyeing U.S. producer-price figures for the next signal on inflation and rates. Fresh spikes in oil-driven inflation, or sudden swings in the dollar, could keep local gold prices choppy—making a smooth slide toward ₹1 lakh unlikely.
So, Chennai jewellery gold has dropped compared to two days back, yet a sovereign still costs north of ₹1 lakh. Traders are now watching to see if global prices can stay above the $4,000 mark—or slip further.
