No relief for gold buyers; Prices rise again amidst global instability 

THIRUVANANTHAPURAM: The gold prices in Kerala witnessed a slight increase on Friday. The price rose by Rs 15 per gram and Rs 120 per sovereign. The price of one gram of gold today is Rs 14,010, while a sovereign of eight grams costs Rs 1,12,080. Although gold prices recorded a steep decline yesterday, today's increase indicates that there is little room for relief. The price of a sovereign fell by Rs 1,120 yesterday.

There is a strong trend of investors withdrawing money from the stock market and buying gold in large quantities as a safe haven following global uncertainty. This leads to a sudden surge in demand for gold and a sharp increase in prices. However, gold prices may decline if international negotiations and diplomatic discussions gain momentum again.

Moreover, it is common for interest rate changes by the US central bank, the Federal Reserve, to directly affect gold prices. In addition, gold is traded primarily in US dollars in the global market. When the dollar strengthens, buying gold becomes more expensive for countries using other currencies, potentially reducing demand and pushing prices down. Gold prices generally tend to rise when the value of the dollar declines.

In Indian states, including Kerala, demand for gold rises significantly during wedding seasons and festive periods such as Diwali. During these periods, temporary price increases may occur due to the imbalance between local market demand and supply.