Gold price in Kerala nears ₹79,000 per sovereign on Thiruvonam day

Gold prices in Kerala continued their upward trajectory on Thiruvonam day, touching a new high of ₹78,920 per sovereign. The price of a sovereign rose by ₹560 on Friday, after a slight dip the previous day.

The price of one gram of gold also increased by ₹70, reaching a record ₹9,865, according to the All Kerala Gold and Silver Merchants Association, which determines the daily rate of the yellow metal in the state. 

The increase in gold prices in the state is attributed to rising international rates. Fresh sentiment around an imminent interest rate cut by the US Federal Reserve has prompted investors to turn to gold. Interest rates and gold prices share an inverse relationship — when interest rates fall, gold prices typically rise, as investors shift their money into gold, driving up demand and prices.

The price of gold in international markets rose to $3,557.99 per ounce, according to Reuters.

As a result, gold rates in Kerala- which closely follow global market trends- have gone up. Additionally, the Indian rupee is at its lowest against the US dollar, making gold imports more expensive and further pushing up bullion prices. On Friday, the rupee rose by 1 paisa to 88.11 against the US dollar in early trade.

The price of 18-karat gold reached ₹8,170 per gram, a rise of ₹60. The rate of silver also increased to ₹134 per gram, according to AKGSMA.