Gold Prices Continue Unchecked Surge in Kerala, Near 1 Lakh per Sovereign

Kochi: Gold prices in Kerala soared to record highs on Thursday, registering one of the steepest single-day hikes in recent times. The price of 22-karat gold rose by Rs. 2,440 per sovereign (8 grams), pushing the rate from Rs. 94,920 to Rs. 97,360. With this, it is now only a short step away from breaching the Rs. 1,00,000 mark per sovereign—a psychological threshold that many jewellers and consumers have been watching with growing concern.

The price per gram increased by Rs. 305 to Rs. 12,170, a rise of over Rs. 4,000 per sovereign in just one week. Consumers, particularly those preparing for weddings and festive purchases, are finding gold increasingly unaffordable. Including making charges and taxes, a basic ornament now costs well above Rs. 1 lakh for 22-karat gold.

Prices for other purities also reflected the upward momentum. The rate for 24-karat gold climbed to Rs. 13,277 per gram (Rs. 1,06,216 per sovereign), while 18-karat gold was priced at Rs. 9,958 per gram (Rs. 79,664 per sovereign).

The escalation in gold prices is closely tied to trends in the international bullion market. Global gold prices have remained above $2,000 per ounce in recent weeks, driven by investor appetite for safe-haven assets amidst economic uncertainty, rising inflation, and geopolitical tensions.

The weakening of the Indian rupee against the US dollar has further intensified domestic price pressures. Additionally, high import duties and GST have contributed to the rise in retail prices.

International market uncertainty—from fears of a possible U.S. government shutdown, the ongoing conflict in the Middle East. The cumulative effect of these factors has led to a consistent and sharp climb in prices over the past several months.

From January to October 2025, gold has seen an extraordinary rally. The price, which crossed Rs. 60,000 per sovereign in January, has jumped by over Rs. 37,000 in less than ten months. Significant milestones include crossing Rs. 70,000 in April, Rs. 80,000 in early September, and now nearing Rs. 1,00,000 by mid-October.