Gold price rises by Rs 480, coming days crucial

THIRUVANANTHAPURAM: The price of gold have increased in the state again. The price of gold increased by Rs 480 taking the rate to Rs 95,680 per sovereign and by Rs 60 per gram to Rs 11,960. The price of gold has been causing concern since the beginning of December. The price of gold yesterday was Rs 95,200 and Rs 11,900 per gram. The price of gold crossed Rs 95,000 for the first time on November 29.

India is the world's largest gold consumer. Tons of gold are imported into the country every year. Therefore, even small movements in the global market are basically reflected in the price of gold in India. If the price of gold falls in the international market, it is not necessary that the price in India will fall. Factors such as the value of the rupee, local demand and import duty play an important role in determining the price of gold in India.

Presently, the price of gold in the domestic market is determined by the gold associations operating locally. The associations can increase or decrease the price of gold according to the demand. The associations update the price up to twice a day in necessary situations. Meantime, silver prices in the state have also increased today. The price per gram is Rs 196 and Rs 1,96,000 per kilogram. The previous day, it was Rs 192 per gram. The fluctuations in the value of the rupee compared to the dollar will also affect the price of silver.