Gold price falls after reaching record high in Kerala
Tensions between Iran and Israel are feared to escalate into a wider conflict, prompting investors to flock to gold as a safe haven.
Tensions between Iran and Israel are feared to escalate into a wider conflict, prompting investors to flock to gold as a safe haven.
Tensions between Iran and Israel are feared to escalate into a wider conflict, prompting investors to flock to gold as a safe haven.
Gold prices in Kerala fell by ₹120 per sovereign on Monday after climbing to record heights last week. The price of a sovereign (8 gm) is at ₹74,440 in the state, while that of a gram declined by ₹15 to ₹9,305.
The price decreased after setting a new record on Saturday, when it climbed to ₹74,560 per sovereign and ₹9,320 per gram in the state.
Fluctuations in international market prices continue to significantly impact gold rates in the state. A wave of profit-booking by global traders, aiming to cash in on record-high prices of the yellow metal, led to a drop in international rates, with its ripple effect felt in domestic markets as well.
The price of an ounce of gold was down at $3,414.32 in international markets, according to Reuters.
Tensions between Iran and Israel are feared to escalate into a wider conflict, prompting investors to flock to gold as a safe haven. Gold is widely considered a safe-haven asset during times of geopolitical and economic uncertainty. This has caused the price of the metal to skyrocket in recent days.
Meanwhile, uncertainty lingers around the US central bank's decision on whether to opt for a rate cut or maintain a pause amid ongoing geopolitical tensions. If the Federal Reserve decides to cut rates, it could further support gold prices, as lower yields would make US bonds less attractive, thereby boosting demand for the precious metal.
The price of a gram of 18 karat gold in Kerala is ₹7,660 while that of silver is ₹118, according to the All Kerala Gold and Silver Merchants Association.