Gold prices are surging towards record highs, driven by favourable global market trends. Internationally, gold prices reached $2,482 per ounce yesterday. In Mumbai, gold prices rose by Rs 10 per ten grams to Rs 74,030. The Federal Reserve’s potential interest rate cut by a quarter of a percentage point in September, spurred by reduced inflation, has increased investment in gold. Current trends suggest international gold prices may surpass $2,500 per ounce this week.
The U.S. presidential election and political tensions in the West are boosting gold’s popularity as a safe-haven investment. Federal Reserve Chairman Jerome Powell has indicated that interest rates may drop as inflation falls below the target of 2%.
Gold Prices Surge in Kerala
In Kerala, gold prices have increased by Rs 1000 over two days. Yesterday, gold prices in Kochi rose by Rs 720 per sovereign to Rs 55,000, with per gram prices rising by Rs 90 to Rs 6,875. This is the second-highest price in history.
Cost of Jewellery
Including gold price, labour charges, a 3% GST, and hallmarking charges, the current price of a sovereign of jewellery is close to Rs 60,000. The highest recorded price in Kerala was Rs 55,120 on May 20.
Factors Behind the Surge:
Potential drop in U.S. interest rates
Central banks increasing gold reserves
Rising purchase interest in gold as a safe deposit
Economic crisis in China
Current Gold Price in Kerala:
Price of 8 grams of gold: Rs 55,000
