Gold prices in Kerala inched up on May 13, reversing some of the steep fall seen a day earlier. A sovereign (8 grams) climbed by ₹120 to ₹70,120, while the price per gram rose by ₹15 to ₹8,765.
Lightweight 18-carat gold also gained ₹10 per gram, now priced at ₹7,190. Silver, however, stayed flat at ₹108 per gram.
The sudden dip in gold prices on May 12 — a fall of ₹2,360 per sovereign — came in two parts. First, prices dropped ₹1,320 in the morning. Then, by noon, gold dipped another ₹1,040 after news broke of a temporary trade agreement between the US and China.
That global deal calmed financial markets and nudged investors away from gold, often seen as a 'safe haven' during uncertainty.
Even though prices plunged on May 12, global gold rates started climbing again by May 13 morning. By 10 am IST, gold was trading at $3,238.56 per ounce — up by 0.39% compared to the previous day.
This bounce comes amid signs that the global economy might just avoid a deeper slowdown. The trade ceasefire between the US and China, easing tensions between India and Pakistan, and a stable US dollar have given investors some breathing room. That’s pushed many to shift their money into shares and other investments, leading to temporary weakness in gold.
Market watchers are now waiting for the Consumer Price Index (CPI) numbers — the standard gauge for inflation — to be released by both India and the US on May 13. These numbers will likely influence the next move by the US Federal Reserve on interest rates, which could again swing gold prices either way.
Though the market price for one sovereign stands at ₹70,120, buying jewellery will cost more. That’s because the base price doesn’t include making charges, GST or hallmarking fees.
Here’s a rough breakdown for a simple 8-gram gold ornament:
5% making charge minimum
3% GST on gold and making charge
₹45 hallmarking fee
18% GST on that fee
All put together, a basic piece could cost around ₹75,888 — and that’s the lower end. Fancy designs or custom work will only push it higher.
Experts believe this up-and-down movement in gold and silver prices could continue throughout the week. So, anyone planning to invest should tread carefully.
The value of the US dollar, along with global tensions or peace deals, can all move prices in either direction.
