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Gold prices dip in Kerala; Dhanteras sales may cross ₹20,000 crore

Profit-taking, a stronger rupee and easing global tensions pull prices lower, but festive demand remains strong across India.

Dhanam News Desk

Gold prices in Kerala have fallen, offering some respite to those planning to buy the precious metal. Today, gold is trading at ₹11,995 per gram, down ₹175 from the previous rate. The price of a sovereign (pavan) has declined by ₹1,400, reaching ₹95,960.

Eighteen-carat gold, commonly used for lightweight jewellery, has dropped by ₹140 to ₹9,865 per gram, while 14-carat gold is priced at ₹7,685 per gram and 9-carat gold at ₹4,970 per gram.

Silver prices have also edged lower, with the metal trading at ₹194 per gram, a decrease of ₹2.

Global cues pull gold prices lower

Although gold had touched record highs in recent days, prices have now fallen amid strong profit-taking by investors. Signs of an easing in the US–China trade dispute have also contributed to the decline, easing demand for safe-haven assets.

Adding to the pressure, the Indian rupee strengthened against the US dollar in the previous session, making imported gold slightly cheaper in domestic markets. This, too, is believed to have influenced the downward movement in prices.

However, analysts note that geopolitical tensions and trade uncertainties persist across several regions, ensuring that gold’s appeal as a safe investment remains intact. Many experts believe that prices could rise again in the coming days, supported by global instability and long-term investor confidence.

₹20,000 crore on Dhanteras

Gold sales are expected to surge across India today as the country celebrates Dhanteras, marking the beginning of the five-day Diwali festival. Traditionally regarded as an auspicious occasion to purchase gold, Dhanteras is believed to bring prosperity and good fortune to those who buy the precious metal.

The day also serves as a crucial indicator for jewellers and traders, who closely observe consumer sentiment and festive demand. Industry estimates suggest that sales could cross ₹20,000 crore, driven by strong festive enthusiasm and steady retail footfall across major cities.

According to the Confederation of All India Traders (CAIT), the total trade turnover during last year’s festive season stood at ₹60,000 crore, of which ₹20,000 crore was attributed to gold purchases.

Despite high prices this year, jewellers remain optimistic about strong festive sales, buoyed by steady consumer sentiment and cultural enthusiasm. Alongside traditional 22-carat gold, there is growing demand for lighter 18-, 14-, and 9-carat jewellery, reflecting a shift towards more affordable and contemporary designs.

Cost for a jewellery purchase

Buying a one-sovereign gold ornament today will cost at least ₹1,03,850, inclusive of a minimum 5% workmanship charge, along with taxes and hallmarking fees. The final price, however, will vary depending on the intricacy of the design and the craftsmanship involved.

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