Gold prices in Kerala touched a fresh record on September 1, climbing to ₹77,640 per sovereign after an increase of ₹680 in a single day. The rate per gram rose by ₹85 to ₹9,705, surpassing the previous day’s record of ₹76,960.
Silver too recorded its highest-ever price in the state, advancing by ₹2 to ₹130 per gram. Traders point to rising industrial demand, particularly for solar panels, as a key factor behind silver’s momentum.
Market analysts link the sharp rise in gold to speculation over interest rate cuts by the US Federal Reserve. Inflation data from the US and the August employment report, due this week, are seen as crucial indicators. Traders estimate an 89% chance of a quarter per cent cut this month.
On September 1, international gold prices climbed as high as $3,486 per ounce, reflecting the global bullish trend.
Global financial institutions remain divided on the medium-term outlook. Bank of America projects gold could reach $4,000 per ounce by mid-2026, with JP Morgan and Goldman Sachs giving similar forecasts. Citigroup, however, expects a possible correction in prices.
Despite the market rate, customers paid more for ornaments on September 1. Making charges, taxes and hallmarking fees pushed the price of a sovereign of jewellery above ₹82,000. The Onam season surge is adding pressure to both jewellers and buyers.
