Gold Prices Dip in Kerala; Further Decline Expected Amid Market Fluctuations
Gold prices in Kerala have witnessed a decline, with industry analysts anticipating further drops in the coming days. The downward trend is primarily attributed to the ongoing potential for conflict in the Middle East. However, a significant counter-pressure exists in the form of rising crude oil prices, which have increased by $8 per barrel since yesterday.
Currently, crude oil prices have surpassed $102 per barrel. Simultaneously, the dollar index has climbed above 99, while the Indian rupee has weakened to 93.40 against the dollar. In the global market, gold prices have dipped to $4,720, directly influencing the local market rates in Kerala. Additionally, the price of silver has decreased to ₹255 per gram.
In Kerala, the price of 22-carat gold today stands at ₹111,800 per sovereign (8 grams), with the gram rate at ₹13,975. For other purities, 18-carat gold is priced at ₹91,880 per sovereign, 14-carat at ₹71,560 per sovereign, and 9-carat at ₹46,120 per sovereign. Silver is currently trading at ₹255 per gram or ₹2,550 for ten grams.
Throughout this month, gold prices in Kerala have fluctuated between a high of ₹112,800 and a low of ₹109,240. For consumers, purchasing a sovereign of gold jewelry today involves an expected cost of approximately ₹1.20 lakh, including additional charges, while those selling old gold may receive around ₹1.11 lakh.
Market experts suggest that while gold prices are expected to decrease slightly as investors shift focus toward crude oil and the dollar amid geopolitical instability, a significant crash is unlikely. The situation remains complex: while a reduction in gold demand generally pulls prices down, the rising cost of crude oil poses a significant inflationary challenge for countries like India. Experts note that gold prices are likely to remain sensitive to global developments, with the potential for a rebound if geopolitical tensions ease and market conditions stabilize.