THIRUVANANTHAPURAM: The price of one sovereign of gold jewellery, including making charges, is likely to cross Rs 1 lakh by Diwali. The minimum making charge is 5%, while for ornaments like necklaces, it can range between 10% and 18%.

For simple items like plain bangles, the making charge is around 5%. With an additional 3% tax and service charge, the current price of one sovereign comes to Rs 87,754.80.

According to gold market expert S. Abdul Nasser, this surge is because gold has become the only reliable investment option worldwide. While demand for gold in Kerala has slowed due to rising prices, the trend in Tamil Nadu and North India shows increased interest in buying during Diwali. This festive demand is expected to push prices further up.

Volatility in the stock market, U.S. tariff policies, ongoing wars in Europe and the Middle East, and weakening currencies are also driving investors toward gold. Adding to this, uncertainty in the U.S. and the fall of the dollar against the Japanese yen have further boosted gold investments.