As the festivities approach, especially ‘Dhanteras’ in India, the gold prices skyrocketed by as much as ₹4,150 per 10 grams during October to touch the ₹60,825 mark on Oct 27 from ₹56,675 on Oct 3, according to figures compiled by the Indian Bullion and Jewellers Association. 

On the occasion of Dhanteras which is on Nov 10, Indians are keen to buy gold as a tradition, as well as the approaching festive and wedding season when the demand for jewellery shoots up.

International market 

In the international market, gold prices have surged above $2,000 an ounce during the week, making it the third consecutive weekly gain, as geopolitical tensions rise amid the Israel-Hamas war.

According to market analysts this has spurred the demand for gold as a safe-haven investment.

Colin Shah, managing director of a jewellery firm, expects the demand for gold to remain buoyant due to the strong “sentimental value” attached towards buying gold during the festive season and the Indian culture of gifting jewellery during weddings.

The recent volatility in the stock markets has also prompted investors to look at a safer bet and gold appears to be the ideal asset. Besides, the gold also provides a hedge against the strengthening dollar as the rupee has been weakening, said a senior bank official.  

War, also a reason for surge

As the Israel-Hamas war threatens to escalate into a wider geopolitical conflict involving the US and Iran, spot gold prices hit $2,000 levels on Oct 27 and closed at 2,006 per ounce levels. 

Gold future contract on Multi Commodity Exchange (MCX) for Dec 2023 expiry surged ₹308 per gm and ended at ₹61,260 levels on Oct 27.

(Source: IANS)

-Edited for style

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