Representational image. Photo: Reuters
Gold prices in Kerala fell on Tuesday following US President Donald Trump’s announcement of a ceasefire between Israel and Iran, signalling a potential end to the 12-day conflict. The development brought much-needed relief to global markets, including India, where both the benchmark indices and the rupee strengthened.
The price of a sovereign of gold decreased by ₹600 to ₹73,240, while the rate of a gram of the metal saw a decline of ₹75 to ₹9,155, according the the All Kerala Gold and Silver Merchants Association (AKGSMA).
The appreciation of the rupee against the US dollar contributed to the decline in domestic gold prices, as a stronger currency makes imports, including gold, more affordable. Meanwhile, the Indian stock market also strengthened, with increased foreign and domestic inflows boosting benchmark indices Nifty and Sensex.
This signalled a pullback by investors from gold, traditionally seen as a safe haven asset during times of economic and political uncertainty. With tensions in the Middle East easing, investors are now shifting focus towards equities and other risk-based assets, aiming to capitalise on the renewed market optimism.
Spot gold was down at $3,338.39 an ounce in the global markets, after hitting its lowest level since June 11 earlier in the session, according to Reuters. Spot silver also eased 0.1 per cent to $36.08 per ounce.
Taking cues, the price of a gram of 18 karat gold in Kerala dropped to ₹7,540 while silver prices eased to ₹119 per gram.
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