Good time to buy gold; prices continue to fall, check today's rates

THIRUVANANTHAPURAM: Gold prices in Kerala continued their sharp decline on Wednesday, with the price of one sovereign falling by Rs 2,240 to Rs 1,11,480. The price of one gram also dropped by Rs 280 to Rs 13,935. A sovereign of gold was priced at Rs 1,20,240 just a week ago. Since then, prices have fallen steadily, with the price of a sovereign dropping by around Rs 8,800.

The fall in Kerala follows the trend in the global gold market, where prices are also declining. Spot gold is trading at around $4,300-$4,360 per troy ounce.

The stronger US dollar is putting pressure on gold prices as inflation in the US rises and expectations of higher interest rates grow. Higher interest rates tend to make gold less attractive to investors as the precious metal does not offer interest income.

The dollar and US bond yields strengthened further after Federal Reserve Chair Kevin Warsh indicated that greater emphasis would be placed on controlling inflation. As a result, investors moved money away from gold.

However, financial experts believe the long-term outlook for gold remains strong. Gold prices could recover next week as new US employment data is released, according to market assessments.

Silver price

Silver prices remained unchanged in Kerala on Wednesday. Silver is currently priced at Rs 250 per gram. The rate is Rs 2,500 for 10 grams and Rs 25,000 for 100 grams. A kilogram of silver is priced at Rs 2,50,000.