Mumbai, 28 October (IANS): The Indian Bullion and Jewellers Association has produced numbers showing that the price of gold in India increased by as much as Rs 4,150 per 10 grammes during October, reaching the Rs 60,825 level on Friday from Rs 56,675 on October 3.
In addition to the impending festival and wedding season, when demand for jewellery soars, the dramatic rise in the price of the yellow metal coincides with the auspicious Dhanteras occasion for purchasing gold on November 10.
Amidst the Israel-Hamas conflict, geopolitical concerns have caused gold prices to jump beyond $2,000 an ounce on the worldwide market for the third week in a row.
Market experts claim that this has increased investor demand for gold as a safe-haven asset.
Jewellery Kama MD Colin Shah anticipates that the Indian custom of presenting jewellery as a wedding present and the significant “sentimental value” associated with purchasing gold over the holiday season will keep the market for gold robust.
Investors are also searching for a safer investment, and gold seems to be the perfect option given the recent volatility in the financial markets. According to a senior bank official, gold also acts as a hedge against the surging dollar at a time when the rupee is losing value.
The current price of gold exceeded $2,000 levels on Friday and finished at 2,006 per ounce, as the Israel-Hamas confrontation threatens to intensify into a larger geopolitical battle including the US and Iran.
The gold futures contract for December 2023 expiration on the Multi Commodity Exchange (MCX) increased by Rs 308 per gramme and closed at Rs 61,260 on Friday.
