How war, rates and rains will impact India’s season of love for gold
As India enters the festive and wedding season, gold prices surge on the back of international geopolitical tensions, such as the Israel-Hamas conflict. Rising from $1,820 to $1,850 in just a day, gold prices continue their upward trajectory. However, this hasn’t deterred Indians from their time-honored tradition of investing in the precious metal, driven by its cultural and emotional significance. While global turmoil has boosted gold’s appeal, especially during uncertain times, the demand for gold during festivities and weddings remains resolute.
It’s the beginning of the festive and wedding season. The one item Indians love to splurge on during this period is the yellow metal. The markets are decked up and sellers are offering incentives to lure customers at a time when gold prices are rocketing. Will they buy more or less when a troika of factors is at play
International gold prices have risen due to uncertainty created by the Israel-Hamas war. Prices rallied from $1,820 to $1,850 in just a day and continued to march upwards. Fears of a broader spillover could make gold more attractive for investors and drive the prices further up. Falling US bond yields amid hopes that the Fed will hold off on another rate hike will also feed into the price of the yellow metal.