Gold rates in India: A significant decline of up to ₹2,100 has been observed in gold price across major cities in India. The Sharpest drop was witnessed in Chennai where gold price fell by ₹2,100. Meanwhile in cities like Hyderabad and Bengaluru, the price of 100 grams of 24 carat gold has declined by ₹1,100. Despite a 1% rise in gold price in the international market where it is Currently Trading at approximately $4,460 per ounce gold price in India have experienced a substantial downturn. Apprehension are mounting rapidly within the gold market that, in light of the global Energy crisis stemming from the Conflict in West Asia, global Central banks may raise interest rate to curb inflation. Consequently, gold investor remain cautious. In India the Reserve Bank of India (RBI) is Scheduled to announce the outcome of its second bi monthly Monetary policy review on June 05, 2026.
Gold Rate in Chennai
Gold Rate in Chennai : The Price of 24 carat gold declined by ₹2,100 Settling at ₹1,579,600 per 100 grams. Concurrently the price of 10 grams of gold fell by ₹210, dropping to ₹157,960. Regarding 22 carat and 18 carat gold, the price for 100 grams of 22 carat gold fell by ₹1,925 to reach ₹1,447,967 while the Price for 100 grams of 18 carat gold declined by ₹1,575 to Reach ₹1,184,700.
On a per gram basis, the rate for 24 carat gold stood at ₹15,796, reflecting a decline of ₹21. Similarly, the rate for 22 carat gold was ₹14,480 per gram and the rate for 18 carat gold was ₹11,847 per gram, with a decline of ₹16 Recorded in the Price of each Category.
Gold Rates in Hyderabad and Bengaluru:
The fluctuations in gold price in Hyderabad and Gold Rate in Bengaluru remained Largely Consistent. In both these Major cities, the price for 24 carat, 22-carat and 18 carat gold have Remained Uniform.
Meanwhile, the Price of 24 carat gold witnessed a significant decline of ₹1,100 settling at ₹1,561,000 per 100 grams, similarly the Price of 22 carat gold dropped by ₹1,008 reaching ₹1,430,917 per 100 grams. Furthermore the price of 18 carat gold fell by ₹825 reaching ₹1,170,750.
Additionally the price of 24 carat gold per 10 grams declined by ₹110 to stand at ₹156,100 the price of 22 carat gold dropped by ₹101 to reach ₹143,092 while the Price of 18 carat gold fell by ₹83 to Settle at ₹117,075.
In these cities, the price of 1 gram of gold depending on the carat saw a reduction ranging from ₹8 to ₹11. Specifically, the price stood at ₹15,610 for 24 carat gold ₹14,309 for 22 carat gold and ₹11,708 for 18 carat gold.
According to Mr. Prithviraj Kothari Managing Director of RiddiSiddhi Bullions trading in gold and silver remain subdued due to a surge in crude oil price driven by lingering Uncertainty surrounding the US Iran peace Agreement. This situation is fueling concerns regarding inflation and simultaneously reinforcing the perceived need for stricter policies by the Federal Reserve.
RBI Policy Repo Rate Outlook:
The RBI is set to Announce the outcome of its second bi monthly Monetary policy for the Fiscal year 2027 on June 05, 2026. In this regard the six Member Monetary Policy Committee (MPC) Commenced its three day policy Meeting on June 03, 2026.
Sook Yin Yong a Fixed Income Analyst for Asia at Julius Baer noted that foreign Currency outflows are Continuing, thereby increasing Pressure on the Indian Rupee. This year, the Indian Rupee touched a record Low against the US Dollar, sliding to (96.8288 on May 20, 2026) The Indian Rupee has Emerged as the worst Performing Asian Currency so far this year and the Potential for further depreciation remain.
To stabilize the Indian Rupee, the RBI has actively intervened in the Foreign Exchange Market, while the government has intensified effort to curb foreign currency outflows, Several additional measure are expected to be Announced in the near future. Meanwhile in the wake of the Middle East conflict, yields on 10 year Indian Government Bonds (IGB) along with other bonds have risen (Climbing 41 basis point to 7.001%) yield are likely to rise further due to elevated Crude oil price and growing Financial Uncertaintie.
Yong further added that, although most economist anticipate that the RBI will keep interest rate Unchanged during the June 3 to 5 meeting, the stock market will closely Monitor for any hawkish signal to asses the likelihood of future interest rate hike.
Outlook for Gold and Silver Rates:
According to Kothari tension have escalated among the Gulf nation that produce Crude oil, following report yesterday by the US military regarding Iranian Missile and drone attack Targeting bases in Bahrain, Kuwait, and other locations attacks which were either intercepted or thwarted. India has Significantly tightened Silver import Regulations and in an effort to alleviate Pressure on the Rupee, has also added granular and Powdered form of the Metal to the Restricted list. Beth Hammack of the Cleveland Fed has indicated that interest rate could be raised if inflation Persist, while market await wage related data. Technically, gold price remain stable within the range of $4,450 to $4,600 and silver price between $72 and $78.50.
