Key factors affecting gold rates in Kerala
The method used to calculate gold prices remains the same every day. However, the factors influencing the calculation change regularly. As these factors fluctuate, the gold rate in Kerala also moves up or down.
- International gold prices: Global bullion prices have the greatest impact on local gold rates. When international prices rise or fall, gold prices in Kerala generally follow the same trend.\
- USD-INR exchange rate: Since India imports most of its gold, fluctuations in the Indian Rupee against the US Dollar directly affect gold prices in Kerala.
- RBI policies: Changes in interest rates and other monetary policies can influence investment demand for gold. Lower interest rates may encourage gold purchases, while higher rates can reduce demand.
- Local demand: Gold buying increases during weddings and festivals such as Onam, Vishu, Akshaya Tritiya, and Dhanteras. Higher demand during these periods can lead to slight variations in retail prices across Kerala.
- Global market sentiment: Economic uncertainty, inflation, and geopolitical events often increase demand for gold as a safe-haven asset, pushing prices higher.
Your gold can help meet your financial needs. Check your gold loan eligibility to estimate how much you may be able to borrow.
Along with market factors, the value of your gold also depends on its purity. 24K, 22K, and 18K gold have different purity levels, resulting in different prices.
What is the difference between 18K, 22K, and 24K gold?
The karat value indicates the percentage of pure gold in a jewellery item. Higher karats contain more pure gold.
How to check gold purity in Kerala
Before buying or pledging gold in Kerala, verify its purity using these methods:
- BIS Hallmark: Confirms the jewellery has been tested for purity and includes the HUID, purity grade, hallmarking centre, and jeweller's identification mark.
- Acid test: A trained professional uses nitric acid to determine gold purity through a controlled chemical reaction.
- X-ray fluorescence (XRF): A non-destructive method that accurately measures the metal composition.
- Electronic gold tester: Provides a quick estimate of the jewellery's karat value.
- Assay testing: A certified assayer melts a small sample to determine the exact gold content.
- Density testing: Compares the density of the jewellery with that of pure gold to estimate purity.
For the most accurate results, visit a BIS-certified jeweller or authorised hallmarking centre in Kerala.
Have gold at home? Check your gold loan eligibility and estimate how much you may be able to borrow.
How can you calculate the value of your gold?
You can estimate your gold's value using three simple details:
- Gold weight
- Gold purity
- Today's gold rate per gram
Formula
Gold Value = Gold Weight × Gold Rate per Gram
Example
If you own 50 grams of 22K gold and today's rate is Rs. 12,826 per gram:
50 × Rs. 12,826 = Rs. 6,41,300
This gives the approximate market value of your gold. The final gold loan amount depends on the applicable LTV ratio, gold purity, and the lender's valuation process.
Now that you know your gold's value, check your gold loan eligibility online to estimate how much you may be able to borrow.
How do gold rates influence gold investments?
Gold prices directly affect the value of different gold investment options. When the gold rate in Kerala rises, the value of physical gold, Gold ETFs, and Sovereign Gold Bonds generally increases. When prices fall, the value of these investments may also decline. Although each investment option works differently, all are influenced by movements in the underlying price of gold.
