The price of gold in Kerala has surged to a historic high, breaking previous records. The cost of a sovereign of 22-carat gold has witnessed a rise of Rs 600, reaching Rs 46,480. This represents a substantial increase of Rs 75 per gram, now trading at Rs 5,810. The current record surpasses the previous high of Rs 45,920, highlighting the ongoing upward trend in gold prices. As a result, individuals looking to purchase a sovereign are now required to pay over half a lakh, inclusive of making charges and GST. The elevated gold prices impact various categories, with a rise of Rs 656 for a sovereign of 24-carat gold, reaching Rs 50,704, and a Rs 496 increase for 18-carat gold, trading at 38,032.
The surge in gold prices in Kerala reflects the broader trend in the precious metals market, influenced by factors such as global economic conditions, geopolitical tensions, and fluctuations in currency values. Gold has historically been considered a safe-haven asset, and during times of uncertainty or economic instability, investors often turn to gold as a store of value. The recent rise in prices may also be attributed to increased demand for gold in the domestic market, driven by various factors, including festive seasons and cultural events.
For consumers and jewelers, the escalating gold prices pose financial challenges and impact buying patterns. High prices may deter some potential buyers, affecting the jewelry and retail industry. Additionally, individuals holding gold as an investment may witness gains, but it also prompts considerations about the right time to buy or sell. The dynamics of the gold market are complex and multifaceted, making it essential for both investors and consumers to stay informed about global and local factors influencing these price fluctuations.