History written on a single day; Gold price crosses Rs 65,000

THIRUVANANTHAPURAM: The price of a sovereign has crossed Rs 65,000 for the first time in history. There was an increase of Rs 880 today taking the price of a sovereign to Rs 65,840. The price of a gram is Rs 8,230 after a rise of Rs 110. As per today’s rate, the price of 10 grams is Rs 82,300. One gram of 24-carat gold is priced at Rs 8978 and one gram of 18-carat gold is Rs 6734.

One sovereign was priced at Rs 64960 yesterday with an increase of Rs 440. The price in India increased as the price of gold in the international market rose to $2,944 per ounce yesterday. The price of a sovereign exceeded the record of Rs 64,600 recorded on February 25. The depreciation of the rupee against the dollar also strengthened the price increase. So far in March, gold has increased by Rs 1,520 per sovereign. The sudden jump in gold prices was triggered by expectations that the key interest rate may be cut twice this year as inflation in the US has eased slightly.

Jewelry owners said the price hike is causing a severe setback in gold sales in the domestic market. The usual upsurge in sales ahead of Holi has not been seen this time. They say that the economic slowdown and uncertainty in investment sectors, including stocks, are negatively affecting sales. Currently, buying one pound of gold costs more than Rs 70,000, including GST, cess and processing fees.