THIRUVANANTHAPURAM: There was a big leap in the price of gold today. A sovereign of gold increased by Rs 750 taking the price to Rs 70,520. This is the highest rate recorded this year. One gram of 22-carat gold is priced at Rs 8,815 and one gram of 24-carat gold is Rs 9,617. The price of a sovereign reduced by Rs 280 taking to Rs 69,760 for a sovereign. The lowest gold rate this month was recorded on April 8. The price of a sovereign was Rs 65,800 and the price of a gram was Rs 8,225.

The main reason for the surge in prices is the high demand for gold. The duties imposed by various countries were temporarily suspended. However, the sudden increase in demand was due to China's massive increase in duties. As the trade war between the United States and China intensified, investors bought gold for safety and so the price rose in the international market. As the tariff war intensifies, the threat of selling China's $760 billion treasury bonds increased the demand for gold.

Meantime, with the increase in gold prices, the number of shops in Kerala is very low. Officials of the Gold Traders' Association said that many shops in the state are in a state of need to close. If the price increase continues like this, the time may come when gold will disappear from wedding functions soon.