CHENNAI: Gold prices in Chennai slumped on Thursday, with the precious metal declining by Rs 1,320 per sovereign.

Accordingly, the yellow metal, which slipped by Rs 165 per gram was sold at Rs 7,200 per gram (Rs 57,600 per sovereign) in the city on Thursday.

Tepid demand by local jewellers amid weak trends overseas is the primary reason behind the fall in prices, traders said.

Silver, too, followed suit, plunging by Rs 2,900 to Rs 93,800 per kg on reduced offtake by industrial units and coin makers. In Chennai, the price of silver dropped by Rs 3 per gram and was sold at Rs 102 per gram.