Gold prices hit record high

Friday, 18 April 2025 00:20 - - {{hitsCtrl.values.hits}}

By Charumini de Silva

Gold prices in Sri Lanka yesterday saw a sharp increase, rising by Rs. 22,000 in just one day. The price of one sovereign (eight grams) of gold was at Rs. 262,000 and it is expected to surge further, possibly reaching Rs. 300,000.

As of yesterday morning, the price of a sovereign (eight grams) of 22-carat gold in Sea Street reached Rs. 242,000 while 24-carat gold sovereign climbed to Rs. 262,000.

On 16 April, 22-carat gold sovereign was at Rs. 238,300 and 24-carat gold was at Rs. 259,000.

At the same, the global gold market also hit a historic milestone yesterday, with the price of an ounce of gold climbing to a record high of $ 3,345 – marking the highest level ever recorded.

National Gem and Jewellery Authority (NGJA) noted that the rise is due to several global developments.

“The recent reciprocal tariff announcement by US Government and increasing tensions from the US-China trade war are driving up the global prices,” NGJA Director (Precious Metal Assaying and Hallmarking) Cover-up Duty K.A.T. Hiroshini told the Daily FT.

She said the move has caused uncertainty in international markets, pushing more investors towards gold. “The declining value of the US dollar in recent weeks, the growing demand for gold as a safe-asset and increasing tensions from the US-China trade war are driving up the global prices,” Hiroshini explained.

In terms of the local market, she said given these external factors and the exchange rate, it has impacted the price of gold in Sri Lanka too.

Jewellery traders in Sea Street, Colombo’s main hub for the gold industry speaking to the Daily FT noted that the rise has been remarkable. “The price hike is real and it coming ahead of the Akshaya Tritiya (considered the most auspicious day to buy gold) is an annual Jain and Hindu spring festival would be favourable for businesses,” they said.

This year, the Akshaya Tritiya falls on 30 April, but the traders have already announced and begun advance purchases and reservations along with discounts.