Gold prices in Kerala have recently surged, reaching unprecedented levels. On February 25, 2025, the price of 1 Pavan (8 grams of 22-carat gold) peaked at ₹64,600, a significant increase from ₹57,200 on January 1, 2025. This sharp rise has left consumers perplexed and uncertain about the factors influencing these fluctuations.
Several key factors contribute to the volatility of gold prices in Kerala. International market trends play a pivotal role; global economic conditions, geopolitical tensions, and currency exchange rates directly impact gold’s value. Additionally, local demand, especially during festivals and weddings, exerts considerable influence on prices. Kerala’s cultural affinity for gold means that any increase in demand can drive prices upward.
Taxation policies also significantly affect gold pricing. In August 2024, the Indian government reduced the gold import duty from 15% to 6%, aiming to stimulate consumer demand. While this move made gold more affordable initially, the subsequent surge in demand contributed to price hikes, illustrating the complex interplay between taxation and consumer behavior.
Consumers often face confusion due to discrepancies in gold pricing across different retailers. Factors such as varying making charges, purity levels, and additional costs can lead to price differences. It’s essential for buyers to verify the purity and obtain standardized pricing information before making purchases to ensure transparency and fairness.
Looking ahead, forecasts suggest that gold prices may continue their upward trajectory. Analysts predict that ongoing geopolitical uncertainties and economic factors could drive gold prices to $3,000 per ounce in the near term. For consumers in Kerala, staying informed about these trends and understanding the underlying factors can aid in making prudent purchasing decisions amidst the fluctuating market.
