Gold price fell below ₹70,000 per sovereign in Kerala on Tuesday, after hitting record heights last week, offering much needed relief to consumers ahead of the wedding season. 
The price of gold eased by ₹280 to ₹69,760 per sovereign (8 grams) after touching a record high of ₹70,160 last week. The rate per gram also dropped by ₹35, settling at ₹8,720. 

But silver price climbed by a rupee to ₹108 per gram, according to All Kerala Gold and Silver Merchants Asociation. 
The decline in domestic prices was primarily driven by fluctuations in the international market. US President Donald Trump's decision to impose separate tariffs on smartphones and electronics next week has kept investors on edge, causing a slight decline in prices. 
However, experts note that the uncertainty has created favourable conditions for gold, which is predicted to climb to new heights this year. 

US based investment bank Goldman Sachs has predicted that gold price would increase to $3,700 per troy ounce by the end of this year, up from their previous estimate of $3,300. The bank said that an increased demand from central banks and growing investor interest in China’s gold-backed Exchange Traded Fund (ETF) are expected to drive the prices higher.
Meanwhile, other investment banks are also predicting a similar increase, with Switzerland based UBS forecasting the prices to reach ₹3,500.
If the forecasts hold true, the ripple effects will be felt in domestic markets as well. However, the uncertainty sparked by President Trump's tariff measures is prompting domestic traders to refrain from making any predictions for now.

"The market is highly unpredictable. We cant say what the prices would at the end of the month or end of year. Market conditions are volatile on political uncertainity," said Dr B Govindan, Bhima Group chairman. 

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