Gold prices in Kerala fell by ₹360 on Tuesday to ₹69,680 per sovereign (8 gm), marking a decline after climbing in the last few days. The price of a gram of gold also dropped by ₹45 to ₹8,710, offering some relief to consumers amid the ongoing wedding season in the state.

Gold prices in the domestic market declined as easing tensions between Russia and Ukraine pulled down international rates. US President Donald Trump said on Monday that Russia and Ukraine would begin negotiations toward a ceasefire following his conversation with Russian President Vladimir Putin.

This, combined with a strengthening US dollar, made gold less attractive to investors, contributing to the decline in global market rates. The drop follows a brief rally over the past few days, which was triggered by Moody's downgrading the United States' credit rating.

The rating agency downgraded the United States' credit rating from 'Aaa' to 'Aa1', citing rising national debt. The downgrade sparked safe-haven demand for gold, pushing prices higher in the days that followed.

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Subsequently, gold rates rose by ₹1,160 per sovereign in the state in the last few days before today's decline. The price of 18 karat of gold was ₹7,180 while silver rates dropped to ₹107 per gram, according to the All Kerala Gold and Silver Merchants Association (AKGSMA). 

International gold rates decreased to $3,215.31 an ounce, while silver is at $32.25 an ounce, according to Reuters.

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