Gold prices drop sharply in Kerala

KOCHI: Gold and silver prices fell sharply in Kerala on Friday in line with global markets, reversing Thursday’s historic rise. Internationally, gold prices briefly dropped below $5,000 an ounce.

As a result, the price of gold in Kerala fell by Rs 6,280 in two stages, bringing the price of a sovereign to Rs 1,24,080. The price per gram dropped by Rs 785 to Rs 15,510. Silver prices fell by 15 per cent in the international market. In Kerala, silver prices dropped by Rs 1,500 per kilogram to Rs 3,95,000.

The sharp fall in prices was driven by fading hopes of an interest rate cut in the United States and strong profit booking by investors. The strengthening of the US dollar also weighed on gold prices. On Thursday, gold prices had surged by Rs 7,920 per sovereign, reaching Rs 1,30,360.