Gold Prices in Kerala Cross ₹1.02 Lakh per Pavan, Extending Record-Breaking Rally

Gold prices in Kerala have climbed to a new historic high, crossing ₹1.02 lakh per pavan and showing no signs of cooling. On December 26, 2025, the price of one pavan of gold, roughly 8 grams, rose to ₹1,02,680, marking another sharp jump in an already relentless upward trend that has gripped the state’s bullion market.

ലക്ഷം ലക്ഷം പിന്നാലെ… സ്വർണം ഒരു ലക്ഷത്തിൽ ഒതുങ്ങില്ല; വില വീണ്ടും കുതിച്ചുയർന്നുhttps://t.co/2HhhwKxjJy#goldratetoday #kerala #kairalinews

— Kairali News (@kairalinews) December 26, 2025

The latest increase represents a rise of ₹560 per pavan compared to the previous day. Per gram, gold is now priced at ₹12,835, up ₹70 from ₹12,765. For consumers and jewellers alike, the surge reinforces a growing reality: gold prices in Kerala are moving steadily beyond the psychologically significant one-lakh-rupee mark.

The climb continues a rapid rally that began earlier this week. On December 23, gold prices crossed ₹1,01,600 per pavan for the first time, triggering widespread discussion among traders, households, and investors. Since then, prices have remained firmly above that level, with daily gains adding pressure on buyers waiting for a correction.

Market watchers point to a combination of global and domestic factors driving the increase. International gold rates have remained elevated as investors worldwide seek safe-haven assets amid economic uncertainty. Fluctuations in the US dollar–rupee exchange rate have further amplified domestic prices, while import duties and local market premiums have added to the final retail cost in Kerala.

Regional media have highlighted the trend as a major economic talking point. Kairali News drew attention to the surge in a recent update, noting that gold has refused to settle at the one-lakh level and continues to climb. The report reflects growing public concern as well as curiosity about how far prices may go.

Kerala has a deep cultural and economic connection with gold, making price movements particularly impactful. The state traditionally records high gold consumption for weddings, festivals, and long-term household savings. With the wedding season underway, many families are now reassessing budgets, postponing purchases, or reducing quantities to cope with the sudden rise.

Jewellery traders report a visible shift in customer behaviour. Footfall remains steady, but buyers are increasingly cautious, focusing on lightweight designs or exchanging old gold rather than making fresh purchases. Some jewellers note that customers are closely tracking daily rates, hoping for even a minor dip before committing.

Investors, on the other hand, are seeing the rally as validation of gold’s role as a hedge against volatility. Those who invested earlier in the year are sitting on substantial gains. Financial advisors say interest in non-physical options such as gold exchange-traded funds and sovereign gold bonds has also increased, especially among younger investors looking to avoid high making charges and storage concerns.

Globally, analysts link the sustained strength in gold prices to expectations around major central bank policies, including interest rate decisions in the United States. Geopolitical tensions and uneven global growth have further supported demand for the precious metal, trends that directly influence Indian markets.

Why This Matters

The continued rise in gold prices affects more than just investors. For households in Kerala, higher rates directly impact wedding planning, festival spending, and traditional savings. Small jewellers face tighter margins and slower conversions, while consumers must decide whether to buy at record highs or wait amid uncertainty. The price movement also reflects broader economic signals tied to global stability and currency trends.

What Happens Next

Market participants will closely watch international gold prices, currency movements, and policy signals in the coming days. Any shift in global sentiment or a stronger rupee could offer temporary relief, while sustained uncertainty may push prices even higher. For now, traders expect volatility to continue as the year-end approaches, with no immediate indication of a sharp correction.

Key Takeaways

• Gold price in Kerala reached ₹1,02,680 per pavan on December 26, 2025
• Per gram price rose to ₹12,835, up ₹70 in a single day
• Prices crossed ₹1 lakh per pavan earlier this week and continue rising
• Wedding buyers and households are adjusting purchases amid high rates
• Investors are benefiting as gold remains a preferred safe-haven asset

FAQ

Why are gold prices rising so sharply in Kerala?

The increase is driven by high international gold rates, currency fluctuations, import duties, and strong safe-haven demand globally.

Is this the highest gold price ever recorded in Kerala?

Yes, the current rate marks an all-time high for gold prices in the state.

Should buyers wait for prices to fall?

Market experts advise caution, as prices remain volatile and depend on global economic developments.