Price of gold leaps; crosses Rs 85,000 per sovereign, rise of Rs 680 today alone

THIRUVANANTHAPURAM: The price of gold is leaping in the state. The price of a sovereign of gold is Rs 85,000 after a rise of Rs 680. This is the highest gold price of this month. This is the first time the price of gold has crossed 85,000 this year. There was no change in the price of gold for the last two days. The price of the yellow metal was Rs 84,680 yesterday and Rs 10,585 per gram. An increase in the price of the metal is a concern for both buyers and jewelry traders.

The sudden change in the global market has caused the price of gold to leap. The weakening of the US dollar is also causing the price of gold to rise. Along with this, the upcoming special days including Navratri, Mahanavami and Diwali have also increased demand. India is the world's largest gold consumer. Tons of gold are imported into the country every year. Therefore, even small changes happening in the global market will basically be reflected in the price of gold in India.

Behind price hike
1. The US Federal Reserve is planning to cut interest rates to overcome economic weakness.
2. Central banks in Europe and Asia are continuously increasing their gold reserves.
3. Import costs are rising as the rupee depreciates sharply against the dollar.
4. Global funds and financial institutions are buying gold which is a safe investment.