On April 4, 2025, gold prices in Kerala experienced a significant decline, with the price per gram dropping by ₹160 to ₹8,400, and the price per sovereign (pavan) decreasing by ₹1,280 to ₹67,200. This marks a notable shift from the previous day’s record high of ₹8,560 per gram and ₹68,480 per pavan.
The primary factor contributing to this sharp decline is profit booking by investors in international gold investment schemes. Following recent record highs, many investors opted to sell off their holdings to realize profits, leading to a decrease in gold prices.
For consumers in Kerala, this price reduction presents a favorable opportunity, especially for those planning significant gold purchases for events such as weddings. Jewelry retailers are offering advance booking options, allowing customers to lock in current lower prices and protect against potential future price increases.
Looking ahead, some analysts predict that international gold prices could decline further to around $1,820 per ounce in the coming years, potentially bringing the price of gold in Kerala down to approximately ₹50,000 per pavan. However, other experts believe that such a significant drop is unlikely, citing ongoing global economic uncertainties that continue to support higher gold prices.
In conclusion, the recent decrease in gold prices in Kerala is primarily attributed to profit booking by investors. This development offers a strategic purchasing opportunity for consumers, particularly those with upcoming events requiring substantial gold acquisitions. Nonetheless, given the unpredictable nature of the global economy, potential buyers should stay informed about market trends and consider advance booking options to mitigate the impact of future price fluctuations.
