Gold prices in Kerala have taken a hit, with the price of gold today falling to ₹11,505 per gram, down by ₹30 from previous levels. Silver too has seen a decline, dropping ₹240 to ₹92,040, coming down from this month's peak of ₹92,600.
If you're looking at 18-carat gold, used mostly for lightweight jewellery, it's now priced at ₹7,370 per gram, with a one-piece price at ₹58,960. Meanwhile, 14-carat gold remains steady at ₹7,370 per gram, while 9-carat gold is trading at ₹4,755 per gram. Silver prices, however, remain unchanged at ₹163 per gram.
Recently, gold prices were on the rise due to the weakening US dollar and growing expectations that the US Federal Reserve might cut interest rates. There’s a sense in the market that the Fed will likely reduce rates by 25 basis points or even 50 basis points after the US government shutdown comes to an end. This speculation comes after the Senate voted to resolve the longest government shutdown in US history, which left thousands of federal workers without pay for weeks.
With the US government reopening, market experts are assessing that this might have caused significant disruptions to the financial system. As a result, the chance of a rate cut has increased, which is likely to encourage more people to invest in gold, considered a safer bet when interest rates drop.
When US bonds, one of the world’s safest investments, offer lower returns, investors tend to look for alternatives like gold. This is what is speculated to have caused the recent fluctuations in the gold market. The weakened US dollar combined with expectations of interest rate cuts has made gold an increasingly attractive investment.
For those looking to purchase a one-pound gold ornament in Kerala, the price today stands at ₹99,599. This figure includes at least 5% in workmanship charges, GST, and hallmarking fees. Depending on the design of the ornament, these charges could go up or down.
The market is watching the US economic indicators closely, with the release of employment data expected to play a significant role in determining the likelihood of further interest rate cuts.
If the anticipated reduction in rates happens, it’s likely to have a continued impact on gold prices, possibly driving them higher once again.
