Will gold fall below Rs one lakh per sovereign? Price continues to fall 

THIRUVANANTHAPURAM: Gold prices in Kerala witnessed another sharp decline on Thursday, extending the recent downward trend in the precious metal market. The price of gold fell by Rs 195 per gram, bringing the rate down to Rs 13,350 per gram. As a result, the price of one sovereign (8 grams) dropped by Rs 1,560 to Rs 1,06,800. Over the past two days alone, gold prices have fallen by as much as Rs 4,720 per sovereign. The current rate is also the lowest recorded so far this month.

Gold had reached its highest level of the month on June 1, when a sovereign was priced at Rs 1,14,560. Since then, prices have seen a steep correction. Market analysts attribute the decline to weakness in international gold markets, a stronger US dollar, rising crude oil prices, and persistently high interest rates.

The recent US military strikes against Iran have also contributed to volatility in global markets, pushing international gold prices to their lowest level in six months. Concerns over escalating tensions in West Asia have weighed on investor sentiment. At the same time, the strengthening US dollar and higher interest rates are expected to continue exerting pressure on gold prices in the coming days.

Amid fears of a wider conflict, many investors have shifted their funds to perceived safe-haven assets such as US Treasury bonds and the US dollar, reducing demand for gold and adding further downward pressure on prices.

Meanwhile, silver prices in the state registered an increase today. The price of silver stands at Rs 260 per gram, while 10 grams of silver are presently trading at Rs 2,600.