A day before the Union Budget, gold price shot up in Kerala. It rose by Rs 120, to Rs 7,730 per gram; and Rs 960, to Rs 61,840 per sovereign. Gold price has increased by Rs 4,640 this month.
International price is also at record highs. Today, gold was trading at $2,799.60 per ounce. On Thursday, it recorded an increase of 1.40 percent.
Gold rose as there were indications that the U.S. economy was heading for a recession. Although the US Federal Reserve did not cut rates at its meeting on Thursday, the market expects it to consider reducing it sooner rather than later. Conclusions that the U.S. GDP would be lower than expected led to a decline in the gains on bonds.
The rise in gold prices is a major setback for consumers in Kerala. With the wedding season approaching, the price of a gold jewelry has jumped. According to analysts, if the import duty is increased by 2 percent in the Union Budget, the price of gold is likely to touch Rs 8,000 per gram.
The price of 18-carat gold, which is used to make light jewellery, also rose by Rs 100 to Rs 6,385 per gram today. For the first time, the price of 18-carat gold has crossed rs 51,000 per sovereign.
According to traders, 14-carat gold jewellery is entering the market due to the steep rise in gold prices. With this, there is a demand to record hallmarking and UID for 14-carat gold as well.
The price of silver again crossed the century mark. Today, it is trading at Rs 101 per gram.
Today, the price of a sovereign of gold is Rs 61,840, but you will have to pay more to buy gold jewellery. This incldues a minimum of 5 percent making charges, a three percent tax on gold and making charges, a hallmark charge of Rs 45 and an 18 percent tax on it, thus taking the bill to Rs 66,933 a sovereign. Of course, the jewellery price varies depending on the design.
