Gold prices surge sharply; Price of a sovereign increased by more than Rs 10,000 in a single day

THIRUVANANTHAPURAM: Gold prices witnessed a massive spike after the import duty was increased to 15 percent. The price of one sovereign (8 grams) of gold, which stood at Rs 1,12,920 yesterday, rose to Rs 1,23,120 today. The price of 22-carat gold increased by Rs 10,200 per sovereign in just one day, while the rate per gram went up by Rs1,275. Traders say this is the biggest single-day increase in gold prices ever recorded.

The lowest gold price this month was recorded on May 5. The price of a sovereign then was Rs 1,09,400. Silver prices have also risen sharply. One gram of silver is now being traded at Rs 320, while 10 grams cost Rs 3,200.

The centre increased the import duty as part of efforts to reduce gold imports. The duty, which was previously six percent, has now been raised by an additional nine percent. Prime Minister Narendra Modi has urged people to avoid buying gold for wedding purposes for at least one year. The move is aimed at stabilizing the Indian rupee and protecting the country’s foreign exchange reserves.