Gold prices in Sri Lanka recorded a sharp increase on Tuesday, reversing the significant decline seen the previous day, in line with fluctuations in the global gold market, traders at Colombo Sea Street said.
The price of a 24-carat gold sovereign rose by Rs. 12,000 to Rs. 380,000, up from Rs. 368,000 on Monday. Similarly, the price of a 22-carat gold sovereign increased to Rs. 349,000 from Rs. 338,000 a day earlier.
Traders attributed the sudden rise in local prices to a rebound in global gold rates. According to market data, the price of gold in the international market climbed by around US$ 130 on Tuesday, pushing the price of an ounce to approximately US$ 4,816.
The increase comes just a day after gold prices in Sri Lanka dropped considerably. On Monday, the price of a 24-carat gold sovereign had fallen by Rs. 12,000 to Rs. 368,000, while a 22-carat sovereign was priced at around Rs. 338,600.
At the time, analysts noted that the decline was driven by a sharp drop in global gold prices, with an ounce of gold falling to about US$ 4,687—nearly US$ 200 lower than last Friday’s levels.
Market analysts say the rapid day-to-day changes reflect heightened volatility in the global precious metals market, influenced by international economic developments and investor sentiment. They caution that local gold prices are likely to remain unstable in the near term as global markets continue to fluctuate. (NewsWire)