Gold price rises for second consecutive day in Kerala following India-Pak tensions

Gold prices in Kerala increased for the second consecutive day, even after global market rates declined following an easing US China trade war. Gold rates rose by ₹400 per sovereign in the state on Wednesday to ₹72,600, while the price of a gram saw a ₹50 increase to ₹9,075.

The price in the domestic markets increased following Operation Sindoor, in which India attacked terror targets in Pakistan and Pakistan-occupied Kashmir. Following the strikes, the Indian rupee depreciated 31 paise to ₹84.66 against the US dollar.

Domestic prices reflected the impact of India's retaliatory strike, while international rates capitalised on the new found optimism on trade talks between US and China. US and Chinese officials will meet this weekend in Switzerland for discussions that investors hope will help resolve the ongoing trade war disrupting the global economy.

Following this, gold price fell 1.2 per cent to $3,389.37 per ounce in global markets. But markets are also cautiously anticipating the interest rate decision by the US Federal Reserve. The US central bank is expected to hold interest rates steady in its upcoming policy meeting, with further cuts anticipated later this year.

Silver prices in Kerala were steady at ₹108. Meanwhile, the price of a gram of 18-karat gold in the state rose by ₹35 to ₹7,495, according to the All Kerala Gold and Silver Merchants Association.

This marks the second consecutive increase in gold prices in the state, following a ₹2,000 surge on Tuesday. Gold prices in Kerala had hit a record high on April 22, with a sovereign priced at ₹74,320. The rate later eased and remained steady in the ₹71,000–72,000 range during the week of Akshaya Tritiya.