Gold, silver prices drop in Kerala; Rs 54,600 for one sovereign

THIRUVANANTHAPURAM: Gold prices in Kerala have dropped again, with a decrease of Rs 200 for 1 sovereign (8 grams) of gold. Today's price for 1 sovereign of gold stands at Rs 54,600, down from yesterday's price of Rs 54,800. Today, the price of one gram of 22-carat gold is Rs 6,825 and the price of one gram of 24-carat gold is Rs 7,445. Meanwhile, the price of silver has also come down in the state. The price of one gram of silver is Rs 96 and the price of one kilogram of silver is Rs 96,000.

Meanwhile, gold imports to India have witnessed a significant surge. Following the reduction in excise duty in the Union Budget, gold and silver imports saw a sharp increase in August. With festive season demand on the rise, India's gold imports in August jumped 221.41% to $1.006 billion, compared to July.

During the same period last year, gold worth 490 crores reached India. Finance Minister Nirmala Sitharaman had reduced the import duty on gold from 15% to 6% in the recent Union Budget. This move has led to a surge in official gold imports, as it makes smuggling less profitable and encourages consumers to buy from official channels. Commerce Secretary BVR Subrahmanyam said that the festive season demand and duty concession have contributed to the surge in imports.

Following the reduction in import duty, gold prices in the domestic market had dropped by ₹4,000 per sovereign (8 grams) in various stages. However, due to favourable conditions in the global market, gold prices have recovered to near previous levels within a month and a half. India's gold imports in August stood at Rs 84,400 crore.

Surge in silver imports as well
India's silver imports skyrocketed to ₹11,038 crore in August, marking a seven-fold increase from last year's ₹1,317 crore.