Rs one lakh for jewellery worth one sovereign! Gold prices hit new record in Kerala

THIRUVANANTHAPURAM: Breaking all erstwhile records, the cost of one sovereign of gold in the state reached Rs 89,480 on Tuesday. Today, an increase of Rs 920 for one sovereign of gold was reported. The gold rate crossing the Rs 89,000 mark is unprecedented in the state. There has been an increase of Rs 1920 in two days. Yesterday, the prices were increased by Rs 1,000.

With the new rates in effect, a customer would have to spend more than one lakh from their earnings to own just one sovereign of gold.

At a 10 per cent processing fee, one gold sovereign of gold jewellery costs Rs 1.01 lakh in the market today. Today's silver price is Rs 167 per gram and Rs 1,67,000 per kilogram.

The price surge was driven by large investment institutions and central banks buying gold as a safe-haven asset in view of the US shutdown and trade tariff uncertainty. Investors also believe that the world is heading towards another recession. Central banks are increasing their gold reserves by eliminating the US dollar and US bonds. The international price may reach $4,000 per ounce by Diwali. Therefore, the price of a gram in Kerala may cross Rs 12,000 before Diwali.