Gold prices in Kerala saw a sharp rise on Wednesday, climbing by ₹1,760 in a single day to reach ₹71,440 per sovereign, primarily driven by shifting global trends influencing international rates.

The price of a gram of gold also rose by ₹220 to ₹8,930, following a dip on Tuesday, according to the All Kerala Gold and Silver Merchants Association (AKGSMA), which determines the price of the precious metal across a majority of jewellers in the state. 

The price hike in the state was attributed to shifting international conditions, primarily driven by fears that Israel may attack Iran’s nuclear facilities, said B Govindan, Chairman of the Bhima Group. This uncertainty has prompted investors to turn to gold, which is considered a safe haven asset during times of geopolitical tension.

Adding to the geopolitical concerns is the fresh uncertainty sparked by the UK and European Union announcing new sanctions on Russia, without the involvement of the United States. This development comes amid ongoing peace talks between Ukraine and Moscow. The move is seen as an attempt to isolate Russia and increase pressure for an immediate ceasefire.

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Moreover, the new US tax bill introduced in Congress weakened the dollar, further pushing up gold prices. The price of the yellow metal in global markets rose to $3,319.51 an ounce, while silver increased to $33.14 an ounce

Then price of a gram of 18 karat gold was ₹7,360 in the state while silver rates rose by ₹3 to ₹110. 

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