Gold rate falls after record high, drops by Rs 1360 for a sovereign, will the expected change happen?

THIRUVANANTHAPURAM: A drop has been registered in the price of gold in the state today. The price of gold fell by Rs 1,360 to Rs 89,680 per sovereign and by Rs 170 per gram to Rs 11,210. The price has dropped after the last eight days. Recently, there has been an unprecedented rise in the price of gold. The highest gold rate was registered on October 9. On that day, the price of gold was Rs 91,040 per sovereign and Rs 11,380 per gram.

In the international market, the price had fallen to $ 4,020 yesterday. Investors are withdrawing from the US dollar, which is favorable for gold. Investors are pouring money into the safe haven of gold, considering the ongoing US government shutdown and the political crises in France and Japan. Meanwhile, the price of silver has crossed $ 50 per ounce for the first time in history. So far this year, gold prices have increased by 53 percent.

Meantime, traders and gold lovers are not pinning much hope on the fall in gold prices today. If we also take into account the depreciation of the rupee, the price of gold in Kerala may reach Rs 1 lakh before Diwali. Gold is the safest investment during a crisis. Leading central banks in the world are increasing their gold reserves by eliminating US dollars and bonds from their foreign exchange reserves. Gold prices have increased by 51 percent so far this year.