Canva
News

Kerala gold prices hit new peaks as global factors drive up costs

A sovereign, which is eight grams, now costs ₹66,000 after a ₹320 jump

Dhanam News Desk

Gold prices in Kerala have climbed again, reaching new highs. The price of one gram of gold increased by ₹40, bringing it to ₹8,250. A sovereign, which is eight grams, now costs ₹66,000 after a ₹320 jump. This has overtaken the previous record of ₹65,840 set on March 15.

For those interested in 18-carat gold, often used in lightweight and stone-studded jewellery, the price has also risen to ₹6,780 per gram. The bank rate for 24-carat gold bars has touched ₹90 lakh.

What’s pushing gold prices up?

One major reason seems to be the surge in global gold prices, which have now crossed $3,013 per ounce for the first time. This, combined with the Indian rupee standing at ₹86.77 against the dollar, has pushed up prices in Kerala.

International developments may also be playing a role. Reports suggest that Israel's attacks on Gaza, violating a ceasefire agreement, have contributed to the spike in global gold prices. Given the current situation, any expectations of a price drop seem unlikely for now. In fact, some market analysts indicate prices could rise further.

Gold has long been seen as a safe investment during uncertain times, and with ongoing wars and economic instability, demand for the metal could remain strong. There are also concerns about former US President Donald Trump’s trade war threats, which might add to economic tensions.

For jewellery lovers

Even though a sovereign is priced at ₹66,000, buying gold jewellery comes with additional costs. Customers will have to pay a making charge, usually at least 5%, plus a 3% tax on both the gold and the making charge. Then there’s a ₹45 hallmarking fee, which also carries an 18% tax. Put together, this means the final cost for a sovereign could be around ₹71,500.

The design of the jewellery also matters. Some pieces come with higher making charges, which means prices can go up even more. Buyers should keep this in mind when heading to the jeweller.

SCROLL FOR NEXT