Gold price in Kerala has once again touched a record high, matching the ₹75,040 per sovereign rate last seen on July 23. This is only the second time the price has crossed the ₹75,000-mark in the state.

The rise is driven by uncertainty in international markets, which influence domestic pricing trends. According to the All Kerala Gold and Silver Merchants Association (AKGSMA), which sets daily rates, the price of gold rose by ₹10 on Wednesday, with one gram now priced at ₹9,380.

With 3 per cent GST, a hallmarking fee of ₹53.10, and an average making charge of 10 per cent, buying one sovereign of gold jewellery today would cost around ₹85,000.

US President Donald Trump's tariff threats and uncertainty surrounding the Federal Reserve's next move on interest rates have influenced market sentiment. Trump is expected to announce a new appointment to the Fed to replace Governor Adriana Kugler, who resigned on Friday, along with his nominee for the next Fed Chair.

This could significantly influence the Fed's decision on interest rates. Interest rates and gold prices generally have an inverse relationship. Trump, who supports a rate cut, is expected to weigh in on the Fed’s direction, which could potentially drive gold prices higher.

However, international gold prices slightly declined in early trading on Wednesday to $3,376.69 per ounce, as investors remained cautious ahead of Trump’s upcoming decisions, according to Reuters. 

The price of a gram of 18 karat gold also rose by ₹10 to ₹7,750, which is a record high. The price of a gram of silver also rose by ₹1 to ₹124, according to AKGSMA.

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