Heavy blow to gold buyers: price rises by Rs 2,320 in a single day

THIRUVANANTHAPURAM: The price of gold has risen sharply again, giving a heavy blow to those planning to buy jewellery. In Kerala, the price of gold increased by Rs 290 per gram Tuesday morning, reaching Rs 14,220. With this, the price of one sovereign (8 grams) rose by Rs 2,320 to Rs 1,13,760. This is the highest price recorded for a sovereign since June. The price of silver also increased by Rs 10 per gram, touching Rs 255.

Economic experts point to developments in the economies of the United States and China as the reasons behind the rise in gold prices. Demand for gold has increased both for jewellery and as an investment. In China, the world's largest consumer of gold, increased investment flows into gold exchange-traded funds (ETFs) have also contributed to the rise in global gold prices.

Economic experts estimate that the international gold price could surge towards $4,500. If that happens, the price of one sovereign of gold in Kerala could cross Rs 1.15 lakh.
Gold prices in the state had recorded a slight decline yesterday. The price fell by Rs 35 per gram to Rs 13,930, while the price of a sovereign dropped by Rs 280 to Rs 1,11,440. This slight decline came after gold prices had surged by more than Rs 6,000 over four consecutive days. The market price of silver was Rs 250 per gram yesterday.