Kochi: In a striking reflection of market volatility, gold prices in Kerala fluctuated sharply within a single trading day, leaving both jewellers and investors in a state of surprise. Prices witnessed a dramatic rise of ₹2,400 per sovereign (eight grams) during the morning session, only to fall by ₹1,200 by the afternoon. The rare intra-day swing highlighted the unpredictable nature of the bullion market amid fluctuating global cues and domestic demand patterns.
In the early hours of Monday, gold prices surged to record levels, with the rate per sovereign climbing to ₹94,360 and per gram reaching ₹11,795. The upward movement was attributed to heightened buying interest among investors and consumers anticipating further price hikes. The global sentiment around safe-haven assets also contributed to the early rally, as uncertainties in global financial markets and currency fluctuations continued to drive gold’s appeal.
However, by the afternoon session, the momentum reversed. The price of gold slipped by ₹1,200 per sovereign, bringing the rate down to ₹93,160. On a per-gram basis, prices eased to ₹11,645, indicating a rapid correction within hours. Analysts observed that the price fall was triggered by profit-booking among traders who had capitalized on the morning surge. Additionally, a dip in international gold prices and a stronger U.S. dollar contributed to the pullback in the domestic market.
Gold traders in Kerala remarked that such dramatic movements are uncommon within a single day. They attributed the volatility to speculative trading and fluctuating global prices, influenced by recent economic data releases and changing investor sentiment. “The sudden rise in the morning was driven by investor rush, but the correction by afternoon shows how fragile the momentum was,” said a local bullion dealer in Kochi.
Experts point out that the gold market has entered a phase of heightened sensitivity to international cues, especially with uncertainty surrounding U.S. interest rate decisions, geopolitical developments, and inflation trends. The global spot gold rate has been oscillating within a tight range, reflecting cautious investor behavior ahead of key financial announcements expected later this week.
Domestic factors have also played a role. The festive season has increased local demand, but rising prices have kept many consumers on the sidelines. Retail jewellers in Kerala observed that customers are closely tracking price trends, hoping for a more stable range before making purchases for weddings and upcoming festivals.
The sudden intra-day swing serves as a reminder that while gold remains a preferred investment during uncertain times, it is also highly susceptible to rapid market adjustments. Investors are advised to adopt a cautious approach, focusing on long-term trends rather than reacting to short-term fluctuations.
As the global economy continues to face headwinds, including inflationary pressures and currency volatility, gold prices in India are likely to experience further fluctuations. Market watchers believe that the coming weeks will be crucial in determining whether the recent volatility stabilizes or intensifies further, potentially setting the tone for gold’s trajectory through the festive and wedding season.