Gold prices surge close to record high, buy now as yellow metal likely to set record prices this week

KOCHI: Due to favourable trends in the global sector, gold prices are again moving to new highs. In the international market yesterday, the price of gold rose to 2,482 dollars per ounce. In Mumbai, gold rose by Rs 10 per ten grams to Rs 74,030. News that the Federal Reserve, the central bank of the United States, may cut the key interest rate by a quarter of a percentage point in September due to a significant reduction in inflation has boosted investment interest in gold. According to current trends, international gold prices may cross $2,500 per ounce this week.

The presidential election in the United States and political tensions in the West are increasing the popularity of gold as a safe-haven investment. Federal Reserve Chairman Jerome Powell has hinted that interest rates may drop as inflation falls below the Federal Reserve's target of 2 percent.

Prices rising in Kerala

In two days, the price of gold in Kerala increased by Rs 1000. Yesterday, the price of gold in Kochi increased by Rs 720 per sovereign to reach Rs 55,000. The price rose by Rs 90 to Rs 6,875 per gram. This is the second-highest price in history.

Rs 60,000 to buy jewellery

Including gold price, labour charges, three percent goods and services tax and hallmarking charges, the current price of a sovereign of jewellery comes close to Rs 60,000. The current record price in Kerala is Rs 55,120 recorded on May 20.

Behind the surge

• Interest rates likely to drop in the US
• Central banks increasing gold reserves
• Purchase interest on gold as a safe deposit
• China's economic crisis

Price of 8 grams of gold in Kerala- Rs 55,000