Kochi: After two days of decline, gold prices in Kerala rebounded strongly today, reinforcing fears that another record high is just around the corner. The increase, though modest in absolute numbers, is significant given the already elevated levels of the yellow metal in the state.
The price of 22-carat gold rose by ₹320 per pavan (8 grams), bringing the current market rate to ₹84,240. With GST, hallmarking, and making charges added, consumers will now have to pay at least ₹93,000 for a single pavan of jewellery. On a per-gram basis, 22-carat gold stood at ₹10,530, while 18-carat was priced at ₹8,655, 14-carat at ₹6,735, and 9-carat at ₹4,345.
This rebound comes on the heels of a correction that saw gold ease from its all-time high earlier in the week. Jewellers say today’s price rise is only the beginning of a renewed rally, with the market mood tilted toward fresh highs.
The sharp movements in Kerala’s gold market are linked to a combination of international and domestic factors. Global spot gold is trading close to record levels as investors flock to safe-haven assets amid concerns of slowing global growth and expectations of further U.S. interest rate cuts.
Adding to this, the depreciation of the rupee has pushed up the cost of imported bullion. Import duties, GST, and currency fluctuations all feed into Kerala’s jewellery pricing, where consumer demand is traditionally stronger than in most other parts of India.
The timing of this rally is particularly sensitive, as Kerala prepares for Diwali and the wedding season. Demand for gold traditionally peaks during these months, and jewellers anticipate panic buying as customers rush to secure ornaments before prices climb further. Market observers suggest that rates could touch ₹12,000 per gram if the current momentum continues.
For families preparing for weddings, the price surge has created financial stress. A typical wedding set that once cost around ₹5 lakh is now touching ₹6.5 to ₹7 lakh, forcing households either to scale back purchases or stretch their budgets.
While gold is stealing headlines, silver quietly scripted history today. The price of silver in the state climbed to ₹144 per gram, its highest ever recorded level. After remaining stable for three days, silver’s sharp rise reflects a global surge driven by both investment and industrial demand. Analysts caution that silver could rise further in the coming days, mirroring the trajectory of gold.
The rapid price escalation has left both consumers and jewellers unsettled. Retailers in Kerala’s gold hubs, from Thrissur to Kochi, report mixed sentiments wealthier customers are rushing to buy before prices climb further, while middle-class families are delaying purchases in hopes of a correction. Smaller jewellers, already under pressure from high operating costs, fear a drop in footfalls if the market races past the ₹12,000-per-gram mark.
Experts believe that the present rally may push Kerala’s gold rates into uncharted territory in the coming weeks. With both festive demand and global market cues pointing upward, the chances of a new record are high. However, the volatility also means that corrections can occur swiftly, depending on international monetary policy decisions and currency fluctuations.
For now, Kerala’s glittering wedding market and jewellery trade remain caught in a tense wait-and-watch phase, bracing for what could be another historic peak in the price of the yellow metal.