Gold Prices At Historic High
Kochi, Kerala: This morning, when the gold price was set, the international gold price was $2,923, and the rupee exchange rate was Rs 87.29. Accordingly, the price was published at Rs 8,060 per gram and Rs 64,480 per sovereign (8 grams in Kerala). However, after 10 o’clock, the rupee strengthened further and fell from 87.29 to 86.86 paise. There was a difference of 43 paise. Accordingly, the price decreased by Rs 50 per gram.
The price dropped to Rs 8,010 per gram and Rs 64,080 per sovereign.
The bank rate for 24 carat gold has become Rs 90 lakh per kilogram.
If you want to buy a sovereign of gold at the lowest making charge, you will have to pay close to Rs 70,000 per sovereign in Kerala market.
The rise in gold prices has had a mixed response in the Kerala market.
Gold prices have risen by $280-300 in the last one month. In November, the gold price fell from the $2,790 level to $2,536, and then rose again by about $406 to reach $2,942.
The Indian rupee has weakened against the dollar to 87.80, and currently the Indian rupee is at 86.86.
“The reason for the rise in domestic prices is that the rupee has weakened further.
During the November to February seasonal demand period, even though the Israel-Gaza ceasefire came, Trump’s trade war and the ensuing tensions and policies, and the strong global fear arising from it, increased the demand for gold as a safe investment. Moreover, Trump’s comment that interest rates should be lowered was also beneficial for gold,” said Adv. S. Abdul Nasar, State General Secretary, All Kerala Gold and Silver Merchants Association.
“Moreover, Trump’s moves against dollarization, as well as his policies and fears that they would raise inflation, increased demand from central banks and others as a natural hedge against it, as a global currency. Trump’s moves to strengthen the dollar could further increase demand for gold as a global currency,” he added.
Will there be a change in gold prices?
“Of course, there can be a change in the market. Even if it moves technically, demand may decrease at high prices. May be profitable as well. Moreover, short selling and hedging can happen. There is a higher chance of strong selling pressure.
If we look at the previous correction history, the gold price, which rose from $900-945 in 2008-09 to $1,917, fell to $1,050 in the 2012-13 correction. After that, the international gold price was at a low level of $1,160-1,360 until 2019. After that, the price rose in several stages in 2019 after several corrections to reach $2,074, but there were two significant corrections. Once from $2,074 to $1,676 (-$398) and after that, the high price fell from $2,077 to $1,617 (-$460) levels. In between, there were several fluctuations of $200-250. Any market, if the price rises, at least 50% of the high price may be corrected in the near future.
In 2024, the price fell from $2,050 to $1,810 and after that, the price, which started rising from November, reached $2,942 after several corrections. Therefore, corrections are natural in any market,” Nasar said.
The price of gold has risen by about 46% in the last one year. The growth in the last 4 or 5 years is also about the same.
