Two hikes a day, gold price nears ₹95,000 per sovereign in Kerala

Gold prices in Kerala surged again on Wednesday, once in the morning and again in the afternoon, as rates in the state edged closer to ₹95,000 per sovereign (8 gm). The price of a sovereign rose by ₹400 in the morning and another ₹400 in the afternoon, bringing the total to ₹94,920.

The price of one gram of gold increased by a total of ₹100 during the day and currently stands at ₹11,865, according to the All Kerala Gold and Silver Merchants Association, which sets the daily bullion rates based on international prices and domestic market conditions. The price of 18 karat gold saw an increase of ₹40 per gram to ₹9,810. 

The biggest surprise of the day was silver, which touched ₹200 per gram for the first time. Like gold, silver is seen as a safe investment, driving its global prices upward as well.

In international markets, gold was trading at $4,200 per ounce as of 4 pm, while silver stood at $52.81 per ounce.

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.

The surge in metal prices follows renewed trade tensions between the United States and China after Beijing announced plans to curb exports of rare earth metals, crucial for the semiconductor and electronics industries. The move drew a sharp rebuke from former US President Donald Trump, who threatened to impose 100 per cent tariffs on Chinese goods.