Gold breaks record in Kerala again as price of sovereign crosses ₹94,000

Gold in Kerala continued its record-breaking rally over the past few weeks, with the rate of a sovereign (8 gm) crossing the ₹94,000 mark to reach ₹94,360 on Tuesday. The price saw an increase of ₹2,400 in a single day.

The price of one gram of gold rose by ₹300 to ₹11,795 (i.e. ₹1,17,950 for 10 gm) , according to the All Kerala Gold and Silver Merchants Association, which determines the daily bullion rate in the state based on international market trends and domestic conditions. The rate of 18-karat gold increased to ₹9,755 per gram, AKGSMA said.

Silver also extended gains and rose by ₹5 to an all-time high of ₹193 per gram. 

The latest rally is attributed to the surge in global bullion prices, which touched $4,162.31 per ounce as of 10:30 am. International gold rates have climbed by nearly 58 per cent this year, breaching the $4,100-per-ounce mark for the first time.

Global banks and analysts foresee no immediate relief in gold prices, with some predicting the rally could extend further to $5,000 per ounce. Bank of America and Societe Generale analysts expect gold to reach that level by 2026, while Standard Chartered has raised its 2026 average forecast to $4,488 per ounce.

Renewed trade tensions between the United States and China have reignited safe-haven demand, with investors turning to gold as a stable asset amid geopolitical and economic uncertainty. China's move to curb exports of rare earth metals, crucial for the semiconductor and electronics industries, has prompted US President Donald Trump to threaten a 100 per cent tariff on imports from Beijing. 

Meanwhile, the ongoing US government shutdown, now in its 13th day, and expectations of fresh interest rate cuts by the US Federal Reserve have also boosted gold's appeal.

Adding to the momentum, the Indian rupee's depreciation — down by 9 paise to 88.77 against the US dollar in early trade on Tuesday — has made gold imports costlier, further pushing up domestic prices.