Record surge in gold price, rises Rs 1,200 per sovereign in a day

Representational image: Shutterstock / Santhosh Varghese

Kochi: The price of gold increased at a record rate on Saturday. The price of a sovereign gold has risen to Rs 44,240 per sovereign after an unprecedented Rs 1,200 rise in a day. 

With a Rs 150 rise, the yellow metal costs Rs 5,530 per gram.

The price has increased by Rs 3,520 in the span of a week. This spurt in gold rate was never recorded in recent times. 

You need to pay Rs 48,000 to buy one sovereign of gold in the state even with the lowest making charge. 

The prices rose to record high on Saturday due to the surge in gold prices when trading started in the US market. The gold price had crossed $1,960 at the beginning of trading on Friday. The price rose by $40.

The spurt in gold price  comes amid weakness in the US dollar and softening of US treasury yields. If the Federal Reserve does not take measures to save the banking sector at the monetary policy review meeting on March 21, the prices will increase further. 

There are reports that the price may cross $2,000 and even reach $2,500 in the next few days. There will be a proportional price increase in India too. 

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