Slight relief, gold prices drop in state

THIRUVANANTHAPURAM: The price of gold has dropped in the state. The price per sovereign (8 grams) is Rs 58,840. The price of gold has remained unchanged for the last three days. The price was Rs 58,960 the other day. The price has fallen by Rs 120. The price of a gram has fallen from Rs 7385 to Rs 7355.

In the country's commodity market MCX, the price of ten grams of 24-carat gold is Rs 78,336. The price of gold has now started to fall from where it seemed to reach a record of Rs 60,000. The problems in the United States have mainly led to the present fall in the gold prices.

Global changes are causing fluctuations in the price of gold in the international market. The domestic price also changes accordingly. The indication that there is a recession in the world's main economic power, the United States, is currently pulling down the price of gold.

The US created only 12,000 jobs, compared to the expected 200,000. Hurricanes Helen, Milton and cyclones caused the damage. Fewer jobs indicate a recession in the country.

Low retail inflation in the US is likely to lead to a reduction in the base interest rate. This will be decided in December. It is likely to decrease by only .25 percent. This has led to a rise in US government bonds and the dollar. This has also caused the price of gold to fall.

There are concerns that the conflict between Iran and Israel will destabilize the global economy. This is also putting pressure on gold, like other investments.