Amid Israel strikes & Trump tariffs, gold price hits record high of ₹66,000 per sovereign in Kerala

After two days of decline, gold prices in Kerala have surged to a historic high, reaching ₹66,000 per sovereign (8 grams) for the first time ever.

The price rose by ₹320 per sovereign, while the price per gram increased by ₹40 to a record-breaking ₹8,250. This surpasses the previous record of ₹8,230 per gram and ₹65,840 per sovereign set on March 14.

The price of 18-carat gold also rose by ₹33 to ₹6,750 per gram. Meanwhile, silver prices remained steady at ₹111 per gram.

"Israeli air strikes may also see tensions flare in the Middle East again and that could add to the litany of drivers pushing gold higher," said Capital.com's financial market analyst Kyle Rodda.

The surge in gold prices past the key $3,000-mark for the second time globally in a week is attributed to economic uncertainty driven by US President Donald Trump's tariff policies. The US dollar index hovered near a four-month low, making gold more affordable for overseas buyers.

Gold, traditionally viewed as a hedge against geopolitical instability, has risen more than 14% so far this year. Since Trump took office in January 2025, gold has hit a record high 14 times as trade tensions fuelled demand for the safe-haven asset.

Trump has proposed a series of tariffs, including a flat 25% on steel and aluminium, which took effect in February. He also announced reciprocal and sectoral tariffs set to take effect on April 2.

New economic projections from Federal Reserve officials this week are expected to provide clearer insights into the potential impact of Trump's policies. Forecasters have lowered US growth expectations for this year, warned of a possible recession, and anticipate increased inflation.