Russia-Ukraine tension escalates; gold prices up by Rs 800 per sovereign

A salesperson shows a gold ring to customers at a jewellery showroom during Dhanteras. File photo: Reuters/Amit Dave

Kannur: With the tension between Russia and Ukraine escalating drastically, the gold prices have gone up significantly.

In Kerala, the gold prices increased by Rs 800 taking the price of one sovereign to Rs 37,440. One gram of gold cost Rs 4,680 per gram.

This is the highest single day rise during the last two years.

During the last one week the price of gold increased by Rs 1,360.

The price of gold shot up after the United States appealed to its citizens to leave Ukraine immediately. The price of troy ounce (3.11 gram gold) in the international market rose by 35 taking the price to USD 1,860.

The publication of the inflation index of the US also led to the increase in prices of gold.

At 7.5%, the inflation rate in the US is the highest in recent times.

With this the possibility of the US Federal Reserve raising the interest has also increased.

If the US increases interest rates and the tension between Ukraine and Russia worsens, then the prices of gold might even go further up.

For the past nine months the international price of gold has been 1700-1800 dollars. If it crosses the 1800 dollar mark then the prices might shoot up.

The record price of gold in Kerala has been Rs 42,000/sovereign. The price of gold had gone up significantly in August 2020 following Covid crisis.

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