Gold prices rise again; sovereign rate up by Rs 4,840, no immediate relief for buyers

THIRUVANANTHAPURAM: Gold prices have once again risen sharply in the state. The price of gold rose by Rs 4,840 per sovereign, taking the rate to Rs 1,17,720, while the price per gram increased by Rs 605 to Rs 14,715. The sharp fall in gold prices over the past three days had raised hopes among those waiting to buy jewellery. However, a sudden change in the global market led to a steep rise in prices, delivering a setback to buyers.

Although the price of one sovereign of gold fell by Rs 1,000 yesterday morning, it climbed by Rs 1,600 by afternoon to reach Rs 1,12,880. On February 2 alone, gold prices had dropped by Rs 9,840 per sovereign. This had led to speculation in the market that prices could fall below Rs 1 lakh in the coming days. However, a strong rally in the stock market and the appreciation of the rupee reflected partly in gold prices.

With concerns over the India-US trade agreement easing, foreign investors returned to the Indian market, leading to a strong gain in the rupee against the US dollar on Tuesday. Corporates and foreign investors bought dollars in large volumes, pushing the rupee up by 122 paise to 90.27 against the dollar. This marks the biggest single-day rise in the rupee’s value in the past two-and-a-half years.

Meanwhile, despite price fluctuations, investors continue to buy gold. Sunny Thomas, Managing Director of Edimannickal Gold and Diamonds and a financial analyst, said many people are purchasing gold as an investment. While some are buying low making-charge gold jewellery for future use, others prefer to invest in 22-carat gold coins or 24-carat gold biscuits, he added.

Silver prices today
Silver prices in the state also recorded a surge today. The price rose to Rs 320 per gram and Rs 3,20,000 per kilogram, compared to Rs 300 per gram on Tuesday. Silver prices in Kerala are determined based on international market trends, and fluctuations in the rupee against the dollar also influence silver rates.