Gold prices cross record high of Rs 60,800 per sovereign in Kerala

Gold prices in Kerala surged to a record high on Friday, rising by Rs 960 per sovereign (8 gm) to reach Rs 61,840. The price per gram increased by Rs 120 to Rs 7,730.

The price from the previous day was Rs 60,8800 per sovereign and Rs 7,610 per gram. Over the past three days, gold prices in Kerala have risen by Rs 1,760 per sovereign and Rs 220 per gram.

The price of 18-carat gold also increased by Rs 100 per gram, reaching a new high of Rs 6,385. Silver prices rose by Rs 1 per gram, bringing the rate to Rs 101.

The surge in gold prices is attributed to increased demand as investors flock to the safe-haven metal, spurred by growing concerns over US tariffs.

On the global front, spot gold steadied at $2,794.61 per ounce, having gained over 6 per cent this month, reported Reuters. Earlier in the session, gold hit an all-time high of $2,799.71. US gold futures rose by 0.2 per cent, reaching $2,826.90.

President Donald Trump’s announcement on Thursday that the US would impose a 25 per cent tariff on imports from Mexico and Canada has further fuelled demand for gold. Market strategist Yeap Jun Rong from IG noted that "repeated tariff threats have led to safe-haven flows into gold." He added that a surprising dip in inflation could prompt the Federal Reserve to cut rates sooner, providing additional support for gold, Reuters added.

However, analysts at BMI warned of potential downside risks for gold in 2025. They anticipate significant volatility as the Fed is expected to take a more cautious approach to rate cuts.