Kerala Gold Price Plummets Amid Global Market Volatility

Gold prices in Kerala continued to fall on Monday, with one gram dropping by Rs 135 to Rs 14,370. The price of a sovereign also decreased by Rs 1,080 to Rs 1,14,960.

The decline in gold prices follows the trend in the global market, where prices had risen before falling sharply last week. Gold prices reached as high as $4,687 an ounce at one point but dropped to $4,445 by the end of the week.

The drop in gold prices can be attributed to reports that the US Federal Reserve may raise interest rates in September. This led investors to move money out of gold, which does not provide interest income.

However, financial experts say gold still has strong long-term growth potential and expect prices to recover next week when the latest US labour market data are released.