After sparking expectations of another record-breaking rally, gold prices in Kerala reversed course on Wednesday, registering a modest decline while remaining comfortably above the ₹1 lakh milestone.
The price of gold fell by ₹200 per sovereign, bringing the rate to ₹1,01,200, while the per-gram price slipped by ₹25 to ₹12,650.
The correction comes after a sharp run-up in recent days. On Tuesday morning, gold prices had jumped by ₹480 per sovereign, once again crossing ₹1,02,000, before witnessing a steep ₹880 fall by afternoon. The downward momentum has continued since then, following a ₹2,680 surge over the previous three days.
Gold first crossed the ₹1 lakh mark on December 23, continuing its upward climb in the days that followed. The metal touched an all-time high of ₹1,04,440 per sovereign on December 27. Since then, prices have slipped below the peak and are now fluctuating near the psychological ₹1 lakh level.
Experts say global market movements are driving gold prices in Kerala. Rising geopolitical tensions, including US military actions in Venezuela, have boosted demand for gold as a safe-haven investment, keeping prices elevated despite the recent pullback.
