Key factors affecting gold rates in Kerala
The method used to calculate gold prices does not change every day, but the factors behind the price do. Changes in these factors can cause the gold price in Kerala to rise or fall.
- International gold prices: Global bullion prices have a strong influence on local gold rates. When prices in the international market move, the gold rate today in Kerala may also change.
- USD-INR exchange rate: India imports much of its gold, so currency movements matter. If the Indian Rupee weakens against the US Dollar, the cost of imported gold can increase.
- RBI policies: Changes in interest rates and other monetary policies can affect demand for gold. Lower interest rates may make gold more attractive to buyers, while higher rates can have the opposite effect.
- Local demand: Gold purchases often increase during weddings and festivals such as Onam, Vishu, Akshaya Tritiya and Dhanteras. Changes in demand during these periods may affect retail prices across Kerala.
- Global market sentiment: Inflation, economic uncertainty and geopolitical events can influence investor demand for gold. During uncertain periods, more people may turn to gold as a safe-haven asset, which can support higher prices.
Your gold can help meet your financial needs. Check your gold loan eligibility to estimate how much you may be able to borrow.
Market conditions are not the only factor that matters. The purity of your gold also affects its value. 24K, 22K and 18K gold have different purity levels, so their prices can vary.
What is the difference between 18K, 22K, and 24K gold?
The karat value tells you how much pure gold is present in a jewellery item. A higher karat means a higher gold content, while lower karat gold has more other metals mixed with it.
- 18K gold: It contains 75% pure gold and 25% other metals. This makes it stronger and suitable for jewellery that is worn regularly.
- 22K gold: It contains 91.6% pure gold and is widely used for traditional jewellery. If you are checking the gold rate today in Kerala for 22 carat, remember that the rate can differ from other purity levels because the gold content is different.
- 24K gold: It contains 99.9% pure gold. Since it is softer than lower-karat gold, it is generally used for coins and bars rather than everyday jewellery.
| Parameter | 18K Gold | 22K Gold | 24K Gold |
|---|
| Purity | 75% | 91.6% | 99.9% |
| Strength | Highest | High | Lower |
| Common Use | Diamond jewellery and daily wear jewellery | Traditional jewellery | Investment bars and coins |
| Price | Lowest | Higher | Highest |
How to check gold purity in Kerala
Before buying or pledging gold in Kerala, check its purity using these methods:
- BIS hallmark: Look for the BIS hallmark and HUID on the jewellery. These markings help verify the purity grade and identify the hallmarking centre and jeweller.
- Acid test: A trained professional applies a controlled amount of acid to the gold and observes the reaction to assess its purity.
- X-ray fluorescence (XRF): This is a non-destructive method that checks the metal composition without damaging the jewellery.
- Electronic gold tester: This device provides a quick estimate of the gold's karat value.
- Assay testing: A certified assayer tests a small sample of the gold to determine its gold content accurately.
- Density testing: This method compares the jewellery's density with that of pure gold to estimate its purity.
For a reliable purity check, 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
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.
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.
