Finally, what feared has happened; price of a sovereign crosses Rs 80,000, will price reach Rs 1 lakh by year end?

KOCHI: The price of gold hits an all-time record in the state again. The price of a sovereign of gold is Rs 80,000 and the price per gram is Rs 10,000. There was an increase of more than Rs 1000 for a sovereign of 22 carat gold. With this, it has reached Rs 80,880. After an increase of Rs 125 per gram, the price is Rs 10,110. There are indications that the price of gold may rise further in the present situation.

In the wake of the worsening economic recession in the United States, the news that the Federal Reserve, the central bank, will cut the key interest rate the next day has given strength to gold. Today, the price of gold in the international market has reached $ 3670 per ounce. It is estimated that it will reach $ 3800 by the end of this year. If that happens, the price of gold in Kerala may reach up to Rs 1 lakh.

What is behind price hike 1. Central banks are selling dollars to increase their gold reserves, considering concerns about the stability of the US dollar 2. Major investors are buying gold, considering political tensions in the Middle East and Ukraine 3. The rupee has fallen sharply after the US imposed additional duties on Indian products, increasing import costs Gold dominates currency market As investors' confidence in US Treasury deposits and the euro has decreased, gold is becoming more popular as a safe-haven currency. The world's major investors and central banks have increased their gold reserves on a large scale since the Covid period. Presently, 20 percent of the foreign exchange reserves of central banks are gold. With this, the amount of the euro has decreased to 16 percent.