Kerala gold rates drop Rs 1,280 in a day as domestic and global trends diverge

THIRUVANANTHAPURAM: Gold prices in Kerala declined further on Sunday afternoon, extending the day's losses to Rs 1,280 per sovereign following a morning drop of Rs 320 and a subsequent decline of Rs 960. The price of a sovereign (8 grams) fell to Rs 1,09,760, while the price per gram stood at Rs 13,720. The afternoon revision alone saw gold prices fall by Rs 120 per gram.

The decline followed three consecutive days of price increases. Despite Sunday's correction, gold prices remain above the month's low of Rs 1,09,280 per sovereign, recorded on October 6.

The fall in domestic prices came even as international gold prices moved higher. The divergence was attributed primarily to movements in the Indian rupee, with global prices gaining support from a weaker US dollar, lower oil prices and strong demand from China.
The contrasting movements highlight how domestic gold prices can diverge from international trends, as currency fluctuations also influence prices in the Indian market.