Price of gold rises by Rs 1800 per sovereign, today's rate @ 1,11,120

THIRUVANANTHAPURAM: The price of gold registered an increase in the state on Monday. The price of gold rose by Rs 1,800 per sovereign (8 grams), taking the rate to Rs 1,11,120 per sovereign. The price per gram also increased by Rs 225, reaching Rs 13,890. The highest gold price recorded this month was on June 1, when a sovereign of gold was priced at Rs 1,14,560. Although prices had declined in recent days, they have rebounded today.

Global agencies predict that gold prices could witness a significant rise once tensions in West Asia ease. Factors such as a potential peace agreement between the United States and Iran, the full reopening of the Strait of Hormuz, and a resulting decline in crude oil prices are expected to support gold prices.

As inflationary pressures ease, central banks, including the US Federal Reserve, may begin cutting interest rates. Lower interest rates generally make gold more attractive to investors, as the opportunity cost of holding non-interest-bearing assets decreases. During periods of conflict, global investors had shifted funds to safe-haven assets such as the US dollar and US treasury bonds, which had put pressure on gold prices. Any reversal of that trend could provide further support to the precious metal.