Kochi: Gold prices in Kerala have crossed the ₹1 lakh mark per sovereign (8 gram), with Tuesday morning rates recording ₹1,01,600 per sovereign. Gram gold is priced at ₹12,700. The trend has continued upward over the past few days, with Monday’s price at ₹99,840 per sovereign, marking a historic high.

This year alone, gold prices have risen by ₹44,800. Currently, buying gold jewellery for one sovereign would cost you over ₹1.13 lakh, including 3% GST, 10% making charges, and hallmarking fees. Prices may vary depending on changes in making charges.

Merchants note that the sharp daily fluctuations, sometimes in the thousands, mean that only customers who book in advance may get some relief. However, advance bookings have also led to major losses due to rapid price changes.

The surge in gold prices is driven by international factors, including the US Federal Reserve’s rate cuts and geopolitical tensions, such as the potential conflict between the US and Venezuela. On Monday, the international price of a troy ounce (31.1 grams) of pure gold crossed $4,400, reaching $4,411, with intraday highs of $4,421. Analysts predict further increase in 2026 as the US is expected to reduce interest rates twice and the employment slowdown persists, supporting gold prices.

Historically, gold prices tend to rise between November and February, and the current trend aligns with this seasonal pattern.