Is gold on its way out of Kerala? Prices hit an all-time high of Rs 75000

THIRUVANANTHAPURAM: Gold prices reached a record high on Saturday, hitting Rs 70,160 for one sovereign. The price increased by Rs 200 for a sovereign gold on Saturday alone. The price of gold increased by Rs 2,160 on Thursday and by Rs 1,480 on Friday. The increase in just three days is Rs 4,360. In the international market, the spot gold price has reached $3,235 per troy ounce for the first time.

Now, one gram of gold costs Rs 8,770. In addition to this, there are labor costs and GST. The main reason for the price hike is the high demand for gold in recent times and the changes in the international market. Tariffs imposed by the US on various countries were temporarily suspended, but China's massive increase was responsible for the sudden surge in demand.

As the trade war between the United States and China intensified, investors bought gold in search of safety, causing prices to rise in the international market. As the tariff war intensified, China's threat to sell its $760 billion treasury bonds has increased gold rates. At the current price, buying one sovereign of gold, including labor, taxes, and cess, will cost more than Rs 75,000.

A big dip in customers has been reported in jewellery shops and outlets in Kerala. The Gold Traders Association raised concerns about many shops being on the verge of closure. If this trend continues, it won’t be long before gold disappears from traditional Kerala weddings.