Kochi: Gold prices witnessed a sharp decline on Monday, reflecting continued volatility in both domestic and global markets amid geopolitical tensions involving the United States, Israel, and Iran. In Kerala, gold rates dropped twice within a single day, signalling heightened market uncertainty.
By the afternoon, gold prices had fallen by Rs 7,560 per sovereign (pavan), bringing the rate down to Rs 99,480. On a per-gram basis, the price declined by Rs 945 to Rs 12,435. Earlier in the morning, prices had already recorded a steep fall, dropping Rs 4,360 per sovereign and Rs 545 per gram in one go. This follows a downward trend observed over the weekend, when gold prices fell by Rs 2,200 per sovereign and Rs 275 per gram on Saturday.
The recent corrections come after a period of significant fluctuations. On Thursday, gold prices saw three major revisions in a single day, cumulatively declining by Rs 5,240 per sovereign. Market analysts attribute this instability to global developments, particularly escalating tensions in West Asia, which initially pushed gold prices higher as a safe-haven asset before triggering profit booking.
In the international market, spot gold prices also recorded a sharp fall, dropping by $278.84 per troy ounce to $4,212.91, a decline of 6.21 per cent. This suggests that global investors are recalibrating their positions, possibly influenced by a stronger US dollar and shifting expectations around interest rates.
It is notable that gold had reached a record high in Kerala on January 29, 2026, when prices stood at Rs 16,395 per gram and Rs 1,31,160 per sovereign. Since then, the market has remained highly volatile, with frequent ups and downs reflecting both global uncertainties and domestic demand patterns.