Gold price jumps again; rise of Rs 2,440 today, price per gram crosses Rs 12,000

THIRUVANANTHAPURAM: There was a major increase in the price of gold today. After an increase of Rs 2440 for a sovereign, the price has touched Rs 97,360 and for a gram Rs 12,170 after a rise of Rs 305 per gram. This is the first time the price of a gram has crossed Rs 12,000. There was no change in the price of gold in the last two days. The price of a sovereign yesterday was Rs 94,920 and Rs 11,865 per gram.

Only Rs 2,640 is needed for the gold price to cross Rs one lakh. Experts said that if we take into account the price hike today and the past few days, the price of a sovereign will soon cross Rs one lakh. With this, the anxiety of those waiting to buy jewellery has doubled. It is estimated that the purchase of gold jewellery will increase even more when the 3% GST, the hallmark fee of Rs 53.10 and the processing fee ranging from 3 to 35% are added.

The possibility of a cut in the base interest rate in the US, the renewed US-China trade war, the crisis faced by regional banks in the US where people don’t repay the loan and the fall of the dollar against other major currencies are the reasons for the sharp increase in gold prices. The purchase of gold in large quantities by major central banks of the world, including the Reserve Bank, in place of currencies for reserves is also contributing to the price increase.

Other reasons for price rise
Intensifying China-US trade war
Possibility of interest rate cut in the US
Central banks' purchase for safety
Gold becomes an alternative currency to dollar