Gold prices fall sharply in state; drop of Rs 1720 today

THIRUVANANTHAPURAM: The price of gold has fallen sharply in the state. There was a drop of Rs 1720 for one sovereign of 22 carat. With this, the price of a sovereign is Rs 1,11,080. The price of a gram has fallen by Rs 215 to Rs 13,885. There was a rise of Rs 2990 in one go yesterday. The price of a sovereign yesterday was Rs 1,12,800 and Rs 14,100 for a gram. The lowest gold price recorded on April 2 was Rs 1,09,240.

Usually, when a war comes, the prices of gold and silver increase. However, after a month and a half of the West Asian War, the situation is different. The war came when gold and silver had made record advances and surged. With this, the prices fell sharply. In Kerala, the price had even plunged from Rs 1.30 lakh to Rs 99,000 at one point. Those who purchased gold considering it a safe investment are now in trouble.

Experts mention four main reasons for the fall in gold. The strengthening of the dollar is the most important of these. The change in interest rates and the slowdown in the industrial sector is the main reasons. In addition, the sale of gold reserves by central banks of various countries also led to the fall in prices. The central banks of countries like Russia and Turkey had sold gold in large quantities to prevent their own currencies from collapsing.

Meantime, the price of silver in the state remains unchanged. One gram of silver is priced at Rs 260 and the price of 10-gram silver is Rs 2600.