Gold prices in Kerala surged sharply on the day, even though international bullion prices were slightly lower at the moment of reporting. In the local market, the price of 22-carat gold rose by ₹135 per gram to ₹14,040, while the price per sovereign jumped by ₹1,080 to ₹1,12,320. The increase came as a surprise to many buyers because global gold had eased by about $9 to $4,330 per ounce, crude oil prices also softened after a temporary pause in tensions between Iran and Israel, and the U.S. dollar index slipped below 100 to 99.96. The Indian rupee also strengthened modestly, gaining 24 paise against the dollar to 95.47 in early trade.
Despite these broader market signals, Kerala gold prices moved up because the benchmark values used to fix local rates were higher at the time of pricing. The article explains that when Kerala’s rates were set on the previous day, international gold was around $4,310 per ounce. When prices were fixed this morning, it had climbed to about $4,340 per ounce, a rise of $30. At the same time, the rupee’s exchange rate against the dollar stood at 95.58 during the pricing window. This combination of a higher global gold benchmark and the currency level led to the increase in Kerala’s retail gold price.
Another local factor also contributed to the upward move. The Bombay market price, which influences Kerala’s rates, increased by ₹148 per gram, and the bank rate rose by ₹105. Bank rate refers to the rate at which banks that import gold supply it to jewellery manufacturers and traders. These changes pushed domestic pricing higher even though international gold appeared to be easing later in the day.
Prices for 18-carat gold also increased in Kerala. According to the All Kerala Gold and Silver Merchants Association, the 18-carat rate rose by ₹115 per gram to ₹11,600. Silver prices, however, remained unchanged at ₹260 per gram. The Kerala Gold and Silver Merchants Association reported a slightly different 18-carat rate of ₹11,535 per gram, while keeping silver at ₹260 per gram.
Association officials said local prices may fall later in the day if international gold prices decline further. State general secretary S. Abdul Naser noted that Kerala’s market rates can be revised again if the global trend turns lower. The article highlights that Kerala gold pricing remains closely tied to movements in international bullion, exchange rates, import-linked bank rates, and domestic market benchmarks.
