Gold prices rebound in Kerala after sharp fall; global cues support recovery

THIRUVANANTHAPURAM: Gold prices in Kerala continued their recovery on Monday, rising for a second consecutive trading day after a sharp decline. The price of gold increased by Rs 35 per gram to Rs 13,570, while the price of one sovereign (8 grams) rose by Rs 280 to Rs 1,08,560.

The recovery comes amid softer international crude oil prices and changing expectations about the US Federal Reserve's interest-rate policy. These factors, along with movements in bond yields and the US dollar, are influencing investor sentiment in the global gold market.

International gold prices rose to around $4,180 an ounce from $4,156, according to the figures cited in the source report.

Lower crude oil prices could help ease inflationary pressures. If inflation moderates, expectations of higher interest rates and bond yields may weaken, potentially reducing support for the US dollar and making gold more attractive to investors. However, the impact will depend on economic data, monetary policy expectations and broader market conditions.

Global uncertainty may support gold demand

Concerns about the global economic outlook and financial instability continue to underpin gold's appeal as a safe-haven asset. Such uncertainty could support demand for the precious metal in the coming days, although the direction of prices will also depend on interest-rate expectations, currency movements and investor positioning.

Meanwhile, unrest in France and concerns about instability elsewhere in Europe could influence investor sentiment. However, the extent to which these developments will affect global gold demand remains uncertain.

Silver prices remain unchanged

Silver prices in Kerala remained unchanged on Monday. The metal was quoted at Rs 240 per gram, or Rs 2,400 for 10 grams. Gold and silver prices may vary by location and jeweller. Jewellery prices may also include applicable taxes and making charges.