Why gold price in Kerala fell by Rs 130 in one day

A disagreement among Kerala gold merchants regarding the buying of old gold from customers has resulted in some merchants reducing the selling price of gold on Wednesday.

The cost of 22-carat gold dropped 130 rupees per gram today. The rates dropped by Rs 1040 for 8 grams of Gold.

"The other day a prominent jeweler announced they would buy old gold from customers at a higher price. This caused some disagreement among jewellers and some decided to reduce the selling price. Meanwhile, the price decided by the All Kerala Gold and Silver Merchants association remains Rs 4620 for a gram," Abdul Nasar, an office-bearer of the association, told Asianet News. 

Not every jewelry shop in the state has reduced the prices. This drop in price is considered the result of stiff competition between some of the major players in the field. 

Some select jewelers like Josco and Malabar Jewellers are selling at a price lower than the rate fixed by Kerala Gold and Silver Merchants Association.

"The gold price was Rs 4,620 in the morning. But later it was suggested to reduce the price to Rs 4,550. As a result, prices have come down," an employee of Josco Jewelry in Thiruvananthapuram told Asianet News Online.

On Tuesday, the price of sovereign gold was Rs 37,440. Today's price for 22-carat gold is Rs 36,960 per sovereign. Gold prices fell sharply in the 18-carat segment on Wednesday. Today, 18-carat gold is priced at Rs 3,820 per gram. On Tuesday, the price was Rs 3865 per gram. Today the price is Rs 45 per gram and Rs 360 per sovereign. 18-carat gold is currently priced at Rs 30,560 per sovereign. Today's price of silver is Rs 69 per gram.