After a brief two-day pause, gold prices in Kerala have surged once again, hitting the highest rate recorded this month. The cost of one sovereign (8 grams) of gold has increased by ₹280, bringing the price to ₹63,840. Meanwhile, the rate of 22-carat gold now stands at ₹7,980 per gram, while 24-carat gold is priced at ₹8,706 per gram.
The primary factors driving this price hike include increased demand from major investment funds and central banks, which continue to accumulate gold as a secure asset. Additionally, the ongoing wedding season in both India and China has fueled a rise in gold consumption, further boosting prices. Many investors are also turning to gold as an alternative to the US dollar amid economic uncertainties. The depreciation of the Indian rupee against the dollar has also contributed to higher import costs, pushing gold prices upward. Notably, the price of 24-carat gold has now reached ₹87.3 lakh per kilogram.
Global Factors Influencing Gold Prices
The volatility in global trade relations, particularly due to Donald Trump’s trade policies and China’s shifting economic strategies, has led to market uncertainties, increasing gold’s appeal as a safe-haven investment. Analysts predict that if this upward trend continues, the price of one sovereign of gold could touch ₹65,000 by the end of February. Additionally, international gold rates are expected to surge past $3,000 per ounce as concerns over trade wars and China’s growing gold reserves continue to mount.
Silver Prices Show a Slight Decline
Unlike gold, silver prices in Kerala have experienced a minor drop. The current rate for silver stands at ₹106.90 per gram and ₹106,900 per kilogram, reflecting a slight decrease from the previous day’s prices of ₹107 per gram and ₹107,000 per kilogram.
As market dynamics shift, investors and buyers will continue to monitor gold and silver price movements closely, with many anticipating further fluctuations based on international economic developments.
