Gold price fluctuates; price of sovereign rebounds, up by Rs 1,600 by noon

THIRUVANANTHAPURAM: The price of gold has increased in the state again. The price of a sovereign dropped by Rs 1,040 in the morning taking to Rs 1,11,280. However, by noon, it increased by Rs 1,600 taking to Rs 1,12,880. According to figures released by the All Kerala Gold and Silver Merchants Association, the price of 22-carat gold today is Rs 14,110 per gram. Over the past three days, gold prices had seen a sharp decline, which had raised hopes among those waiting to buy gold. However, this expectation was dampened as prices rose again by noon today.

There are multiple reasons for the sudden increase in gold prices. A major factor is the fluctuation in the value of the US dollar in the global market. Another reason is the increase in investments in the stock market following the easing of concerns over the India–US trade agreement. Investors who had invested in gold are now shifting their investments to equities in search of higher returns.

In the international market, gold prices had dipped at one point yesterday to $4,450 per ounce. A significant fall in prices followed after Donald Trump proposed Kevin Walsh as the next Chairman of the Federal Reserve. Reflecting global market trends, gold prices in Kerala were revised four times yesterday. By the close of trading, the price of one sovereign had fallen by Rs 5,440 to Rs 1,12,320.

The price per gram fell by Rs 830 in the morning and Rs 400 by noon, but later recovered by Rs 550 in two stages in the evening.