Gold price touches record high of ₹71,360 in Kerala

Gold prices continued its strong upward trend in Kerala on Thursday, hitting a record high of ₹71,360. This marks a sharp single-day increase of ₹840, raising concerns among consumers and jewellers alike.

The price of a gram of gold also rose to ₹8,920 from ₹8,815, coming just ₹80 short of the all-time high of ₹9,000. Experts say such a milestone is not unlikely, as global market trends continue to point in that direction.

US President Donald Trump’s tariff threats are pushing investors toward safe-haven assets, contributing to the surge in gold prices. This resulted in an increase of ₹5,560 in the last ten days alone, rebounding from its monthly low of ₹65,800 recorded on April 8.

Meanwhile, US Federal Reserve Chair Jerome Powell warned that Trump's policies could push inflation further away from the central bank's target, prompting the Fed to wait for more data before another rate cut. This uncertainty could further benefit gold, which is traditionally seen as a hedge against inflation.

US based investment bank Goldman Sachs has predicted that gold price would increase to $3,700 per troy ounce by the end of this year, up from their previous estimate of $3,300. The bank said that an increased demand from central banks and growing investor interest in China’s gold-backed Exchange Traded Fund (ETF) are expected to drive the prices higher.

Meanwhile, other investment banks are also predicting a similar increase, with Switzerland based UBS forecasting the prices to reach $3,500. If the forecasts hold true, the ripple effects will be felt in domestic markets as well.