Gold prices jump again today after dipping below Rs one lakh per sovereign yesterday

THIRUVANANTHAPURAM: The price of gold has dropped again. The price of 22-carat gold is Rs 1,02,920. The price of gold changed four times yesterday alone. The price of a sovereign of gold yesterday morning was Rs 1,02,680. It fell to Rs 99,480 by noon. Later, it increased again to Rs 1,01,080 by evening.

The price rose again by night. A sovereign of 22-carat gold was traded at Rs 1,05,080 last night. Later, the price dropped again today. The present price of one gram of 22-carat gold is Rs 12,865. The price of gold fell below Rs 1 lakh for the first time since January 4 yesterday.

The sharp fall in gold prices last week had given a boost to the gold jewelry market in the state. The war in the Middle East and indications that interest rates will not be reduced in the United States have caused the price of gold to fall. In the international market, the price of gold fell by 12 percent to $ 4,490 per ounce last week. On Friday, the price fell by three percent. Last week was the biggest weekly decline in 43 years.

Gold faced a setback every week since the United States and Israel launched a joint attack on Iran. Jewelers say that the fall in prices due to fears of war presents a huge opportunity for investors. They added that there was a rush to buy gold at jewelers last week.

Behind price drop
1. As the war intensifies in the Middle East, global investors are selling gold and shifting their money into crude oil, dollars, and US bonds.

2. The Federal Reserve chairman's announcement that interest rates in the United States will not be cut anytime soon as the surge in crude oil prices is fueling inflation.

3. Various central banks are selling gold and adding dollars to their foreign exchange reserves to overcome fuel uncertainty and current account deficits.

4. Gold is losing popularity on concerns that central banks will cut interest rates to control inflation as the war drags on.