Gold Prices Plummet in Kerala Amid Rising Oil Prices

The price of gold in Kerala has plummeted due to rising global crude oil prices and increased inflation fears. As a result, the cost of 22-carat gold has fallen by Rs 230 per gram, making a sovereign approximately Rs 1,10,120.

At 9:35 am IST, spot gold prices declined 2.1% to $4,198.10 an ounce, marking the biggest single-day drop since September 1. US gold futures also dropped 2.1% to $4,231 an ounce.

The surge in oil prices has raised concerns about inflation and may make it more challenging for the Federal Reserve to ease monetary policy. Earlier this month, the Fed increased its policy rate by 25 basis points to a range of 3.75% to 4%. Higher interest rates generally weigh on gold as it becomes less attractive compared to interest-bearing investments.