In an astonishing one-day rally, the price of a sovereign (pavan/ 7.98 grams) of gold catapulted by Rs 520, reaching an impressive Rs 42,520, equivalent to Rs 5,315 per gram. This remarkable increase occurred in two increments on Saturday, with a Rs 200 surge in the morning followed by an additional Rs 320 uptick in the afternoon.
Notably, gold prices had been on a downward trajectory for several days, with a dip to a seven-month low of Rs 41,920 recorded on October 5. This drop marked the lowest rate witnessed this month. However, in the span of just two days, the price per sovereign surged by a staggering Rs 600. This sudden and dramatic rise in prices has been attributed to the ongoing Israel-Palestine conflict, which has had a ripple effect on global precious metal markets.
The peak of gold prices in recent memory was reached on May 5, 2023, at Rs 45,760. Following that, prices experienced a decline, though they remain sensitive to international market dynamics. Currently, in the international market, one troy ounce (31.1 grams) of gold is valued at $1,833.10 USD.
Market analysts anticipate that the upward trend in gold prices will persist in the days ahead. With the approaching wedding season and festivals, the demand for gold is expected to rise further. While this surge in prices following a period of decline may be welcomed by investors, it has raised concerns among consumers.
In Kerala, purchasing gold at today’s rates has become a costly endeavor. To acquire one sovereign of gold, buyers must part with Rs 46,030, inclusive of a 5 percent making charge, a 3 percent GST, and a Rs 45 hallmarking charge. Depending on the specific making charge, the final price may vary even further, making gold an increasingly precious commodity in the region.