KOCHI: The gold price breached Rs 26,000 per sovereign in the state for the first time on Friday and closed at Rs 26,120, up Rs 200 from Thursday, mainly tracking the uptrend global markets. Agency reports from abroad shows that the gold spot price shot up to $1,452.60 per ounce (31.1 gm), the highest since May 2013, before closing at $1,442.56.
The uptrend in the yellow metal is mainly triggered by possibility of an interest rate cut by the US Federal Reserve and the spike in tensions in West Asia. The expectation is that FED is likely to cut the rates by 25 basis points (bps) at the scheduled meeting in July 30-31.
The possible weakening of dollar on interest rate cut makes gold cheaper for those holding other currencies, agency reports said. The reports of US drowning an Iranian drone in the Straits of Hormuz have also added weight to gold price.
In local markets in Kerala gold went up by Rs 200 per sovereign to close at 26,120 while the price per gm moved up to Rs 3,265 from Rs 3,240 on Thursday.
The price of the yellow metal in the domestic market is unlikely to see any downtrend in the near future due to the firm signals in the global markets.
