There was a significant surge in gold prices in the state today. The price of one sovereign (8 grams) of gold increased by ₹760, reaching ₹70,520 — the highest rate recorded this year. The price for one gram of 22-carat gold is now ₹8,815, while 24-carat gold is priced at ₹9,617 per gram. Yesterday, the price had dropped by ₹280, bringing it down to ₹69,760 per sovereign. The lowest price this month was recorded on April 8, when a sovereign was ₹65,800 and a gram was ₹8,225.
The primary reason behind the price surge is the increase in demand for gold. Some countries had temporarily suspended import duties, but China significantly increased its tariffs, which led to a sudden spike in demand. As the trade war between the U.S. and China intensified, investors turned to gold as a safe haven, pushing prices up in the international market. The stricter tariffs sparked fears that China might sell off its $760 billion worth of U.S. treasury bonds, further fueling interest in gold.
Meanwhile, despite the price surge, footfall in gold shops across Kerala remains low. Many shops are reportedly on the verge of shutting down, according to gold traders’ association representatives. If the price continues to rise, it may not be long before gold disappears from wedding celebrations altogether.
