Price of one sovereign gold rises to Rs 52280

KOCHI: Following the footsteps of the international market, the price of gold in Kerala increased by Rs 960 per sovereign to Rs 52,280 yesterday. The price of one gram of gold rose by Rs 120 to Rs 6535. As the political unrest in West Asia worsened, gold's value increased due to its growing appeal as a safe investment. In the international market, gold is being sold for 2350 dollars per ounce.

Meanwhile, economists are predicting 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.