Gold prices jump ₹840 per sovereign in Kerala as global market conditions weigh in

Gold prices in Kerala rose twice on Tuesday, registering a total increase of ₹840 to ₹70,840 per sovereign, amid uncertainnity in the global markets surrounding the tariff deal reached by the United States and China along with a decline in the dollar index.

The rates rose by ₹120 per sovereign in the morning and later climbed by ₹620 as international gold prices increased. The price of a gram of gold rose to ₹8,855 with a total increase of ₹105 in the day. Today's increase comes after the prices declined by ₹2,360 per sovereign on Monday.

The dollar index, which measures the value of the US dollar against a basket of major global currencies, slipped by 0.2 per cent on Tuesday, according to Reuters. This, in turn, made it easier for international investors to buy gold, as the value of other currencies rose against the dollar, making the yellow metal relatively cheaper. 

Adding to this trend was the sharp decline in Indian stock markets, coupled with uncertainty surrounding the temporary tariff deal announced by the United States and China. As a result, gold, traditionally viewed as a safe-haven asset, regained investor confidence, prompting increased buying.

The price of 18-karat gold also rose by ₹75 in the afternoon to ₹7,295 per gram, following an earlier increase of ₹10 in the morning. This double increase came after gold prices in international markets climbed by 0.6 per cent to $3,255.09 an ounce, up from $3,234 earlier in the day.