Sharp fall in gold prices; down by Rs 6,640 today

THIRUVANANTHAPURAM: Gold prices saw a sharp fall in the state today. The price of gold dropped by Rs 6,640 per sovereign to Rs 1,11,120, while the price per gram fell by Rs 830 to Rs 13,890. The continuous decline in gold prices has given more hope to those who are waiting to buy jewellery. The sharp fall in gold prices began after January 29.

In the international market, gold prices fell to 4,880 dollars per ounce. Following this trend, the price of gold in Kerala dropped by Rs 6,320 per sovereign last Saturday, reaching Rs 1,17,760. Over the past three days, gold prices have shown heavy fluctuations. After reaching a record high on Thursday, the price per sovereign has fallen by Rs 7,360 over the last two days. Investors are moving away from gold following the decision by US President Donald Trump to appoint Kevin Warsh as the Chairman of the Federal Reserve. Gold prices are likely to fall further in the coming days.

Differences of opinion between the US and NATO allies, along with the appointment of the Fed Chairman, have affected the gold market. At the same time, reports that the US may take military action against Iran had increased investment in gold earlier. As confidence in the dollar and US Treasury investments declined, central banks and large funds across the world have been increasing their gold reserves as an alternative asset.

Meanwhile, silver prices in Kerala have also seen a sharp fall. Today, silver is priced at Rs 300 per gram and Rs 3,00,000 per kilogram. Yesterday, the price was Rs 320 per gram. Silver prices in Kerala are fixed based on international market rates. Fluctuations in the value of the rupee against the dollar also influence silver prices.