If gold price wants to go down, Trump should decide; Record prices due to global trade uncertainty

KOCHI: For the first time in history, the international price of gold has crossed $3,000 per ounce (28.35 g). In Kerala too, the price of a sovereign of gold has increased by Rs 880 to reach a record value of Rs 65,840. The price of a gram has increased by Rs 110 to reach Rs 8,230. The price of 18-carat gold has increased by Rs 90 to reach Rs 6,770. The price of 24-carat gold is Rs 93 lakh per kg.

The price has moved to new highs as the global trade war and the possibility of a recession in the US have increased the demand for gold as a safe investment. Uncertainty over political conflicts with Ukraine and Russia is also increasing the demand for gold. Donald Trump's move to sharply increase tariffs on products from Canada, Mexico, China, the European Union and India is increasing the demand for gold.

Foreign exchange reserves surge, Reserve Bank buys more gold

India's foreign exchange reserves are increasing sharply, giving it strength to face the uncertainties created by Donald Trump's tariff war. Foreign exchange reserves rose by $15.26 billion to $653.97 billion in the week ended March 7. In the previous week, foreign exchange reserves fell by $1.7 billion to $638.69 billion.

During the review period, the value of foreign currencies rose by $13.93 billion to $557.28 billion. The increase in the value of currencies such as the euro, pound, and yen also improved the reserves. Gold reserves increased by $1 billion during the period, making it $74.32 billion. Last month, the Reserve Bank of India bought an additional three tonnes of gold. The Reserve Bank of India's large-scale purchase of dollars to meet the shortage of cash in the market also helped in increasing the value of foreign exchange reserves.