Kochi: Gold prices in Kerala registered a massive double surge on Wednesday, jumping twice within a single trading day. In an unprecedented afternoon revision across local bullion markets, 22-karat gold climbed by ₹265 per gram, pushing the price per gram up to ₹13,090 and taking the price of a sovereign (8 grams) to ₹1,04,720.
Earlier in the morning session, prices had already witnessed an initial uptick, rising by ₹25 per gram to reach ₹12,825 and by ₹200 per sovereign to hit ₹1,02,600. However, strong buying momentum in international markets and changing global financial indicators forced local merchants to issue a second upward revision later in the day.
- Weakening US Dollar & Falling Yields: A decline in the US Dollar index and a drop in US Treasury bond yields gave a major push to precious metals. As the greenback softens, buying gold becomes more cost-effective for investors holding other currencies. Lower yields on bonds also decrease the opportunity cost of holding non-yielding gold.
- Geopolitical & US Election Impact: Market volatility triggered by early results of the US elections spurred safe-haven demand. Democratic leads in key Senate contests weighed down US stock futures, resulting in institutional investors rotating capital into safe assets like gold.
- International Spot & Futures Rates: In early Asian trading, spot gold edged up 0.1% to $3,931.24 per ounce, while US gold futures for December delivery reached $3,941.40. Bullion traders are currently tracking the crucial $4,000/ounce psychological benchmark, which will dictate global spot trends in upcoming sessions.
World Gold Council Projections & Local Demand Trends
Despite record-breaking prices, retail demand for physical gold in major consuming nations remains muted. The World Gold Council (WGC) has projected that India’s domestic gold demand in 2026 could drop to its lowest level in six years, driven by elevated prices impacting festive jewelry sales and tempering consumer investment.
In contrast to gold, other precious metals showed mixed movements globally: spot silver slipped 1.3% to $49.12 per ounce, while platinum declined 1.9% and palladium dropped 0.6%.
