Gold prices in Kerala have jumped yet again. On March 13, the price per gram increased by ₹55, bringing it to ₹8,120, while the price of one sovereign (8 grams) rose by ₹440 to ₹64,960. Over the past two days, gold has become ₹800 more expensive. On march 12 alone, the price went up by ₹360 per sovereign.
The price of 18-carat gold also rose by ₹45 per gram to ₹6,680, while silver remained unchanged at ₹108 per gram.
Several factors seem to be at play. In the global market, gold is currently trading at $2,945 per ounce, and some estimates suggest it could soon cross $3,000. Historically, gold prices tend to rise between November and February and ease in March, but this time, despite an earlier $120 dip, prices have continued to climb.
One reason could be economic uncertainty in the US as President Donald Trump completes one month into his second term, concerns about a potential economic slowdown are growing. When economies slow down, investors often turn to gold as a ‘safe-haven’ asset.
Additionally, there is speculation that the US Federal Reserve may cut interest rates twice this year. Lower interest rates often make gold a more attractive investment, as it doesn’t offer interest like bonds or savings accounts.
If you’re planning to buy gold jewellery, you might end up paying much more than just the raw gold price. In addition to the ₹64,960 per sovereign cost, you’ll also have to factor in:
--At least 5% in making charges (which can go much higher depending on the design)
--3% tax on both gold and making charges
--₹45 hallmarking charge
--18% tax on the hallmarking charge
When all these are put together, a single sovereign of gold jewellery could cost you around ₹70,307—and that’s a conservative estimate. More intricate designs could push the price higher.
It’s hard to predict what will happen next with gold prices. Some analysts believe the current surge will continue, while others expect a correction in the coming months. If international market trends and US policies continue on their current path, gold could remain an expensive investment for a while.
