KOCHI: Gold prices fell below Rs 44,000 in Kerala for the second consecutive day.

Yesterday, the price fell by Rs 80 to Rs 43,960. There was a drop of Rs 80 on Monday as well. A gram was sold at Rs 5,495 yesterday, down by Rs 10 per gram. A gram of 18 carat gold costs Rs 4,548. There was a decrease of Rs.5.

Gold prices hit a one-month low with gold prices again falling below 44,000. Earlier on July 12, the gold price in Kerala reached the same level.

As far as those who are going to buy gold are concerned, the decrease in the price in the market is very comforting. As Onam is fast approaching, the sale of gold will also increase. Those who are planning to buy gold for Rakshabandhan celebrations and the upcoming wedding season will also benefit from the reduction in prices.

Behind the price volatility

The dollar exchange rate went higher according to the Chinese trade data and investors moved away from gold in view of the US inflation data. The US central bank, the Federal Reserve, is likely to raise key interest rates again as inflation continues to be a concern. This will make the dollar stronger and the yield will also rise. Gold prices will further drop as investors shift their investments into dollars and bonds.