Gold prices in Kerala soared to an all-time high on Friday, reaching ₹61,840 per sovereign (8 grams) after an increase of ₹960 in a single day. The price per gram also saw a sharp rise of ₹120, touching ₹7,730. This surge follows a steady upward trend over the past three days, during which gold prices have risen by ₹1,760 per sovereign and ₹220 per gram.
The 18-carat gold price also climbed significantly, increasing by ₹100 per gram to reach ₹6,385. Meanwhile, silver prices edged up by ₹1 per gram, bringing the new rate to ₹101. The sharp price surge is driven by heightened investor demand as gold remains a preferred safe-haven asset amid growing global economic uncertainties.
On the international market, spot gold remained steady at $2,794.61 per ounce, after rising more than 6% in a month. Earlier in the day, gold hit a record high of $2,799.71, while US gold futures increased by 0.2%, reaching $2,826.90. The rise in gold prices has been largely attributed to escalating economic tensions following former US President Donald Trump’s announcement of a 25% tariff on imports from Mexico and Canada. This move has intensified investor concerns, leading to a rush towards gold as a secure asset.
Market analyst Yeap Jun Rong from IG pointed out that repeated tariff threats have triggered significant safe-haven inflows into gold. He also noted that a lower-than-expected inflation rate in the US could prompt the Federal Reserve to implement rate cuts sooner than expected, further supporting gold prices.
However, analysts at BMI caution that gold prices may experience considerable volatility in 2025. They predict that the Federal Reserve might adopt a more conservative stance on rate cuts, which could lead to potential downward pressure on gold. Despite this, in the short term, gold continues to attract strong investment interest amid global economic instability.
