Gold Prices Fall Further in Keralam as International Rates Hit Seven-Month Low

Thiruvananthapuram: Gold prices continued to decline, offering hope to those planning to buy jewellery but disappointing those who had invested in gold. With international gold prices falling to their lowest level in seven months, prices in Keralam also declined today. However, the fall was not as sharp as yesterday.

The international gold price stood at $4,124 an ounce, down $9 from yesterday's level. In Keralam, the price of gold fell by Rs 25 per gram in the morning to Rs 13,640. The price of a sovereign declined by Rs 200 to Rs 1,09,120. Yesterday, the price of a sovereign had fallen by Rs 2,640 in two rounds.

The decline in gold prices has been attributed to US President Donald Trump's rejection of Iran's proposals to stop the war and reopen the Strait of Hormuz, followed by a rise in crude oil prices.

With crude oil prices remaining above $107, concerns over global inflation and higher interest burdens are intensifying. This is strengthening the dollar and bond yields. As a result, demand for gold as jewellery and as an investment has weakened, leading to the fall in prices.

International gold prices fell to $4,112 at one point today before recovering slightly. Analysts say that if the international price falls below $4,100, the decline could extend to $3,940. If that happens, the price of gold in Keralam could fall to Rs 13,200 per gram and Rs 1.06 lakh per sovereign.

Meanwhile, Iran and the US have entered ceasefire discussions mediated by Qatar. Iran and the US are not holding direct talks; instead, both sides are holding separate discussions with Qatar.

If the talks lead to a peace agreement, oil prices are expected to fall. Concerns over inflation and interest burdens would ease, while the dollar and bond yields could also decline. This could support a rise in gold prices. Analysts say that if the international gold price recovers and crosses $4,275, the rally could extend above $4,330. In that scenario, gold prices in Keralam could cross Rs 14,000 per gram and Rs 1.12 lakh per sovereign.

In Keralam, the price of 18-carat gold also fell by Rs 20 per gram today to Rs 11,205. Silver prices remained unchanged at Rs 240 per gram.