Gold price steady at ₹69,760 per sovereign in Kerala amid global market shifts; outlook remains mixed

The price of gold in Kerala remained steady on Saturday at ₹69,760 per sovereign, bringing much-needed relief to both customers and jewellers. The price per gram also held firm at ₹8,720.

The rates steadied after a sharp rise on Friday of ₹880 per sovereign and ₹110 per gram. Experts predict a possible decline in prices in the coming days, as global markets respond to expectations of cooling tariff tension between the US and China and easing geopolitical tensions, particularly between Russia and Ukraine, and between Washington and Iran, fueling optimism in global markets. 

International gold prices were down by 1.17 per cent on Friday, at $3,201 per ounce, after jumping to $3,251 earlier in the day. Overall, the prices were down by more than 4 per cent this week, after climbing to a record high of $3,500 per ounce earlier this month. 

The progress in tariff talks between US and China along with Washington's initiative to discuss trade deals with other countries have helped the US stock indices to climb, with other major global equities also cashing in on gains. This could also help the prices to climb down.

However, expectations of further rate cuts by the US Federal Reserve at its September meeting could drive gold prices higher in the coming months. President Donald Trump has also called on the central bank to cut rates, a move that could weaken the US dollar and, in turn, influence gold prices. Supporting the likelihood of rate cuts is weaker-than-expected economic data from the United States, as gold typically performs well in a low-interest-rate environment.

All these factors will affect the prices in the domestic market. The price of 18 karat gold was ₹7,185 in Kerala, while silver remained steady at ₹108, according to the All Kerala Gold and Silver Merchants Association (AKGSMA).