Kochi: Gold prices continued their meteoric rise, with one pawan touching Rs 97,360, marking an increase of Rs 2,840 in a single session. The per gram price surpassed Rs 12,000 for the first time, climbing to Rs 12,170 a surge of Rs 10,360 over the past 17 days. This historic milestone has pushed the cost of even modest gold jewellery above the Rs 1 lakh mark when factoring in processing and hallmarking charges.
The cost of crafting a single piece of jewellery now includes a 10% processing fee amounting to Rs 9,736, along with the hallmarking charge of Rs 53 (Rs 45 + 18% GST) and 3% GST on the gold value. As a result, consumers looking to purchase new jewellery are facing record-breaking expenses.
Experts suggest that this rapid ascent may not continue unabated. “Gold is currently overbought, and a short-term correction is likely,” noted market analysts. Technical indicators point to rising risk factors, with a 10–15% price correction considered healthy for the metal after such a swift rise.
Several global factors are contributing to this dynamic. The dollar index is stronger than in recent months, and developments such as the end of the US government shutdown and the Federal Reserve’s decision not to cut interest rates in October are expected to weigh on gold prices. Analysts predict that, if the correction occurs, gold could fall to $3,500–3,600 per ounce, which would translate to Kerala prices around Rs 75,000 per pawan a lucrative entry point for new investors.
Despite the potential for a short-term dip, experts maintain that this is not a trend reversal. Continued purchases by central banks and investments through ETFs are expected to support higher prices. Goldman Sachs projects that gold could reach $4,900 per ounce by the end of 2026, representing a 22.5% gain from current levels. This bullish outlook underscores gold’s enduring appeal as a safe-haven investment amidst global economic uncertainties.
Gold enthusiasts and investors are now watching closely, weighing the prospects of short-term corrections against the long-term growth potential of the precious metal, which continues to glitter as a symbol of wealth and security.