Gold price dips in Kerala ahead of Onam rush

Gold prices in Kerala extended their losses on Monday after hitting a record high on August 8. The price of one sovereign of gold fell by ₹560 to ₹75,000, while the price per gram dropped to ₹9,375, down ₹70 from the previous day's rate.

This decline offers slight relief to customers ahead of the Onam season, which is expected to see a surge in demand. However, today's price remains ₹23,440 higher than the rate on the same day last year, highlighting the sharp increase in the value of the yellow metal.

A slew of international issues, including Trump’s tariffs and ongoing conflicts in various parts of the world, have contributed to this increase. 

However, investors are betting on renewed hopes following reports that U.S. President Donald Trump and his Russian counterpart, Vladimir Putin, are set to hold talks in Alaska this week to explore a possible resolution to the conflict in Ukraine. This has led to a decline in international bullion rates.

Gold rates in Kerala, which closely follow global market trends, declined following renewed investor optimism. Prices in the state had risen to as high as ₹75,760 per sovereign on August 8- an all-time high in Kerala— while the price per gram touched ₹9,470, according to the All Kerala Gold and Silver Merchants Association, which determines daily gold rates in the state based on cues from international markets.

Gold crossed the ₹75,000 mark for the first time in Kerala on July 23, and again on August 6. However, prices began to dip after August 8.

The price of a gram of 18 karat gold also dipped by ₹60 to ₹7,745, which is a record high. The price of a gram of silver remains unchanged at ₹125, according to AKGSMA.