Gold prices rise ahead of festive, wedding season
Mumbai: Gold prices in India rose by Rs 4,150 per 10 gram during October to Rs 60,825 on Friday from Rs 56,675 on October 3, according to data compiled by the India Bullion and Jewelers Association.
The sharp rise in the price of the yellow metal comes ahead of the auspicious Dhanteras occasion for gold purchases on November 10 as well as the festive and wedding season, when demand for jewelery increases.
In the international market, gold prices also rose above $2,000 an ounce during the week, marking its third consecutive weekly gain, as geopolitical tensions escalated amid the Israel-Hamas war.
According to market analysts, this has increased the demand for gold as a safe investment.
Colin Shah, MD, Cama Jewellery, expects gold demand to remain buoyant due to the strong “emotional value” associated with buying gold during the festive season and the Indian culture of gifting jewelery during weddings.
Recent volatility in the stock markets has also prompted investors to look for safe bets and gold appears to be the ideal asset. “Besides, gold also provides a hedge against a strengthening dollar as the rupee is weakening,” a senior bank official said.
As the Israel-Hamas war threatens to escalate into a broader geopolitical conflict with the US and Iran, the spot price of gold on Friday reached the $2,000 level and closed at $2,006 an ounce.
Gold futures contracts for December 2023 expiry on the Multi Commodity Exchange (MCX) rose by Rs 308 per gram and ended at Rs 61,260 on Friday.
–IANS
