Gold price continues to fall; check today's rates

THIRUVANANTHAPURAM: Gold prices in Kerala fell sharply again on Monday. The price of one gram fell by Rs 135 to Rs 14,370, while the price of a sovereign dropped by Rs 1,080 to Rs 1,14,960.

Gold has become cheaper by Rs 6,080 per sovereign in the past week. The price of one gram has fallen by Rs 760 during the same period. The fall in Kerala follows the decline in gold prices in the global market.

Gold prices had a strong run before falling sharply last week. The price rose to $4,687 an ounce at one point before dropping to $4,445 by the end of the week. Gold prices fell by around 5% last week amid reports that the US Federal Reserve may raise interest rates in September.

The US dollar and bond yields strengthened after Fed Chair Kevin Warsh said more focus would be placed on controlling inflation. This led investors to move money out of gold, which does not provide interest income. However, financial experts say gold still has strong long-term growth potential. They expect prices to recover next week when the latest US labour market data are released.

Silver price

There was no change in silver prices in Kerala on Monday. Silver is priced at Rs 260 per gram, Rs 2,600 for 10 grams and Rs 26,000 for 100 grams. A kilogram of silver costs Rs 2,60,000.