Kochi: As West Asia once again slips into the shadow of war, gold prices in the state have surged sharply. Following a joint attack by the United States and Israel on Iran, the price of gold rose by ₹5,240 per sovereign on Saturday, with trading taking place at ₹1,28,720. The price per gram increased by ₹655 to ₹15,465.

The rise occurred in two phases in line with movements in the international gold market. In the morning, after reports of the attack on Iran, the price per sovereign climbed by ₹2,820 to ₹1,20,800. The per gram rate rose by ₹290 to ₹15,100.

Later, after Iran retaliated against US military bases in the Gulf region and against Israel, gold prices surged again. The sovereign price increased by ₹2,920 and the per gram rate by ₹365. This pushed prices to the highest level recorded this month.

With 3% GST and around 10% making charges and other fees, purchasing one sovereign of gold jewellery now costs at least ₹1.40 lakh. The highest-ever sovereign price remains ₹1,31,160, recorded on January 29.

Meanwhile, silver prices changed after three consecutive days of stability. The price rose by ₹10 per gram to ₹295.

The Trump effect returns

Gold has been one of the biggest beneficiaries during Donald Trump’s second term as US President. The additional tariffs imposed by Trump on several countries, followed by retaliatory duties, triggered an unprecedented surge in international gold prices. Domestic prices climbed accordingly.

In a historic first, on December 23, 2025, the price per sovereign crossed the ₹1 lakh mark, reaching ₹1,01,600. After fluctuating in the weeks that followed, gold regained strong momentum following the attack on Iran.

In the international market, one troy ounce (31.1 grams) of pure gold was trading at $5,278 on Saturday, about $100 higher than the previous day. If tensions persist, international prices are expected to rise further in the coming days, which would lead to additional increases in the domestic market as well.