Gold prices at record peak with significant surge on Wednesday, what are expectations in coming days?

THIRUVANANTHAPURAM: Gold prices are skyrocketing in the state with a Rs 600 increase for a sovereign of 22-carat gold today. Now, a sovereign of gold costs Rs 51,280, an all-time record. The price has gone up by Rs 75 to Rs 6,410.

The retail price will go beyond Rs 55,000, after adding the making charge and GST. For 24 carats, the price has been increased by Rs 608. The price for a sovereign of gold is Rs 55,896. For 18 carats, the price has increased by Rs 488 a sovereign and is trading at Rs 41,952.

The political tensions in the West and the recessionary situation in the developed countries have made people opting for gold as a safe deposit. Economists predict that the price for a sovereign of gold will cross Rs 56,000 this year.

The central banks of the world's leading countries are buying gold in large quantities in view of economic uncertainty, creating a surge in prices. PT Joy, a leading chartered accountant and financial expert in Kochi, said that gold is the investment with the best growth potential for the next financial year.

"The return of Putin to power in Russia and the escalation of conflicts with Israel and Palestine have contributed to the hike in gold prices. Along with this, worries about economic conditions in China were also factors leading to an increase in gold prices," Joy said.