Gold prices extend losses in Kerala for third straight day

As global headwinds weigh on bullion, the price of gold in Kerala records a sharp decline, shedding ₹1,000 per sovereign in a single session.

For the third consecutive morning, gold buyers in Kerala are waking up to a cooling market. As of July 7, the price for a sovereign of gold has plummeted by ₹1,000, settling at ₹1,06,520. The decline is equally sharp at the retail level, with the price per gram dropping by ₹125 to reach ₹13,315. This follows a trend of steady corrections seen over the weekend, where Saturday and the previous day’s trading sessions also registered notable dips.

Tracking the volatility

The current price movement reflects a broader shift in market sentiment. Only yesterday, the state saw a minor dip of ₹80 per sovereign, while Saturday witnessed a reduction of ₹200. This week’s movement stands in contrast to the volatility seen throughout June, where prices fluctuated significantly, hitting a monthly lowest point of ₹1,02,760 on two separate occasions—the 25th and the 30th.

Data from the regional markets indicate that this downward pressure is not merely a local phenomenon. On the global stage, spot gold has seen a retreat, with the precious metal falling by 18.62 dollars to trade at 4,137.07 dollars per troy ounce—a decline of 0.45 percent.

Why it matters: The bigger picture

Why is the metal losing its sheen? Much of this movement is being dictated by external factors far removed from local jewellery counters. Investors are currently keeping a close watch on the United States Federal Reserve’s upcoming monetary policy decisions. Any signal regarding interest rate shifts from the Fed tends to have an immediate, inverse ripple effect on gold, which is often seen as a non-yielding asset.

Furthermore, the fluctuations in international crude oil prices are adding another layer of complexity to the bullion market. When oil prices shift, they impact inflationary expectations, which in turn influence how traders position themselves in gold. For the average consumer, this suggests that the local market remains highly sensitive to global macroeconomic signals. While the recent price correction provides a potential entry point for buyers, the trend remains tethered to how central banks and energy markets behave in the coming weeks.