THIRUVANANTHAPURAM: After a long run that saw rates breaking the roof to unprecedented highs, the gold rates plummeted in Kerala on Saturday. The price of one sovereign of gold fell by Rs 800 to Rs 63,120. Rs 7,991 per gram of 22-carat gold and Rs 8,717 per gram of 24-carat gold. The highest gold price of this month was recorded on February 11. At that time, the price of one sovereign gold was Rs 64,480.

Large funds and various central banks are enthusiastically buying gold as a safe deposit as the last few weeks saw the gold rates climbing to unprecedented numbers in the state.

With the start of the wedding season in India and China, gold consumption has seen a surge. Gold is gaining popularity as a global currency alternative to the US dollar. Along with this, due to the depreciation of the rupee against the dollar, the increase in import costs also contributed to the increase in gold rates. The price of 24-carat gold has reached Rs 87.3 lakh per kg.

US President Donald Trump's trade tariff war and China's new economic strategies are expected to cause gold prices to rise further. If the current trend continues, the price of one sovereign gold may reach Rs 65,000 by the end of February. Analysts say that in the current situation, the international gold price may exceed three thousand dollars per ounce.