Gold price in Kerala rebounds above ₹72,000 per sovereign after falling for a week
The price increase is influenced by trade deal concerns, potential interest rate cuts, and gold's status as a safe haven investment.
The price increase is influenced by trade deal concerns, potential interest rate cuts, and gold's status as a safe haven investment.
The price increase is influenced by trade deal concerns, potential interest rate cuts, and gold's status as a safe haven investment.
After a week of continuous decline, gold prices in Kerala rebounded on Tuesday, with the price of a sovereign rising by ₹840 to ₹72,160. The earlier decline in rates followed a ceasefire agreement between Israel and Iran, but renewed uncertainty sparked by US President Donald Trump's tariff deadline pushed up the gold price.
The price of a gram of gold also crossed the ₹9,000 mark, rising by ₹105 to ₹9,020, according to the All Kerala Gold and Silver Merchants Association (AKGSMA), which sets daily rates based on international market trends and domestic factors.
The price of gold in global markets rose to $3,325.79 per ounce early on Tuesday, according to Reuters.
Uncertainty surrounding trade deals ahead of Trump's tariff deadline weakened the dollar and the dollar index, making gold more affordable to investors. Moreover, the yellow metal is considered a safe haven investment during times of economic and political uncertainty.
Moreover, the US Federal Reserve is expected to cut its benchmark interest rates, with President Trump also pressuring Fed Chair Jerome Powell to implement a rate cut. Gold typically performs well in a low-interest-rate environment, and together, these economic factors are supporting the bullion’s upward trend.
Domestic gold rates take cues from these global trends. The price of a gram of 18 karat gold also decreased in the state by ₹90 to ₹7,440. The price of a gram of silver stayed steady at ₹118, according to AKGSMA.
Meanwhile, US investment bank Citi forecasts gold prices to stabilise between $3,100 and $3,500 per ounce in the third quarter, as easing geopolitical tensions in the Middle East and a stronger global growth outlook are expected to moderate recent gains.