Gold prices in Kerala have continued their upward climb, unsettling wedding planners and Onam shoppers alike. On August 8, the price of gold rose by ₹560 per sovereign (8 grams), pushing it to ₹75,760. The gram rate increased by ₹70 to reach ₹9,470.
Just a day earlier, gold had touched ₹75,200 per sovereign — already a record at the time. That mark was crossed overnight, raising concern among both retailers and customers during one of the state's busiest jewellery seasons.
For buyers looking to purchase at the lowest making charges, a sovereign of gold would now cost around ₹81,500.
The price of gold was ₹73,200 per sovereign on August 1. In just a week, it’s gone up by ₹2,560, a sharp rise, even by recent standards.
Silver prices also showed strong movement on August 8, rising by ₹2 per gram to reach ₹125. Meanwhile, 18-carat gold rose by ₹60 per gram to hit ₹7,775.
A key trigger appears to be recent tariff moves by US President Donald Trump. According to reports, the US has imposed higher import duties on gold bars weighing one kilogram and 100 ounces. An order issued on July 31 is expected to affect countries like Switzerland, the world’s largest gold refining hub, which may disrupt global trade flows.
Experts say this could complicate bulk gold settlements by major banks, adding to supply uncertainties and price pressure. In parallel, market speculation about a US interest rate cut in September — triggered by soft unemployment data — is also seen as pushing global investors towards gold as a safe haven.
In India, the impact is two-fold. Not only are global prices rising, but the rupee’s weakening against the dollar is also pushing domestic gold prices higher. On August 8, the international price stood at $3,378 per ounce, while the rupee’s exchange rate was at 87.70.
That currency drop has offset the slight cooling in global rates. For context, the highest international price recorded so far was $3,500 on July 14, when the rupee stood stronger at 84.
The bank rate for 24-carat gold per kilogram has now neared ₹1.10 crore — an all-time high. With the festive season approaching, jewellers are unsure whether to stock more or hold back, as price-sensitive buyers hesitate.
