Gold prices drop by Rs 6,320 per sovereign giving hope to jewellery lovers

THIRUVANANTHAPURAM: The price of gold in the state have recorded a sharp drop for the second consecutive day. The price per sovereign dropped by Rs 6,320 to Rs 1,17,760, while the price per gram fell by Rs 790 to Rs 14,720 today. The price per sovereign yesterday had fallen by Rs 5240 to Rs 1,24,080. This is the first time in history that gold prices have witnessed such a steep fall. Although the continuous decline initially caused concern in the market, it has now sparked a sense of cautious optimism. The lowest gold rate this month was recorded on January 1, when the price stood at Rs 99,040 per sovereign and Rs 12,380 per gram.

Meantime, due to geopolitical tensions, the weakening of the dollar, and other factors, frequent fluctuations in prices are prompting consumers to postpone their gold purchases. Jewelers say that sales have dropped sharply because of the volatility. Gold prices in Kerala closely follow trends in the international market. After reaching a record high of $5,560 per ounce recently, international gold prices plunged to around $5,000 yesterday, triggering the sharp fall in Kerala as well.

The financial policies of US President Donald Trump have intensified volatility in gold prices. Issues ranging from tariff policies to disagreements between the US and NATO, as well as the appointment of the Federal Reserve chair, have impacted the gold market. At the same time, reports that the US may take military action against Iran increased the flow of money into gold. With declining confidence in the dollar and US Treasury investments, central banks and major funds across the world are increasing their gold reserves as an alternative asset.

Silver prices in the state have also seen a steep decline. Today, silver is priced at Rs 350 per gram and Rs 3,50,000 per kilogram, compared to Rs 405 per gram yesterday. Silver prices in Kerala are determined in line with international markets, and fluctuations in the rupee’s value against the dollar also influence silver prices.