Gold prices plunge again by afternoon; drops by Rs 9,840 per sovereign in a single day

THIRUVANANTHAPURAM: Gold prices in the state witnessed another sharp fall on Monday, with rates dropping further by afternoon. In the domestic market, the price of gold fell by Rs 3,200 per sovereign after noon to Rs 1,07,920, while the price per gram declined by Rs 400 to Rs 13,490.

Earlier in the day, gold had already dropped by Rs 6,640 per sovereign to Rs 1,11,120. Overall, prices fell by Rs 9,840 per sovereign and Rs 1,230 per gram in a single day. The steep decline has raised hopes among consumers who had been waiting to buy gold. The sharp downward trend in gold prices began after January 29.

In the international market, gold prices slipped to $4,880 per ounce. Mirroring this trend, gold prices in Kerala had fallen by Rs 6,320 per sovereign last Saturday to Rs 1,17,760. Gold prices have remained highly volatile over the past three days. After reaching a record high on Thursday, the price per sovereign has dropped by Rs 7,360 over the last two days. Market analysts say investors moved away from gold following US President Donald Trump’s decision to appoint Kevin Warsh as the Chairman of the Federal Reserve. Gold prices are expected to remain under pressure 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.