The ongoing conflict between Iran and Israel has intensified the demand for gold, pushing prices higher this week. Despite market saturation, investor interest in the precious metal remains strong amid geopolitical instability.
In Saturday’s trading session, gold prices showed a modest uptick. The price of 24-carat gold reached Rs 7,785.3 per gram, reflecting a Rs 120 increase from the previous day. Similarly, 22-carat gold saw its price rise to Rs 7,138.3 per gram, a Rs 110 jump from Friday.
Narinder Wadhwa, Managing Director of SKI Capital Services Ltd, noted that gold tends to be a reliable hedge in times of global uncertainty, especially during Middle Eastern tensions.
“When geopolitical risks are heightened, gold becomes a safe haven for investors, while crude oil prices become more volatile due to concerns over potential supply disruptions,” he said.
The combination of rising energy prices and heightened geopolitical risks has kept market participants on edge, with gold continuing to act as a key indicator of investor sentiment.
While some experts predict that easing interest rates will sustain demand for gold, global prices experienced a minor 0.2% decline to Rs 2,649.69 per ounce.
This slight dip comes as stronger-than-expected US job growth in September, with the unemployment rate falling to 4.1%, lifted Wall Street stocks.
However, analysts warn that further deterioration in the Middle East could drive gold prices even higher in the coming days.
As global markets remain volatile, particularly in India, financial experts are advising investors to remain patient.
Stock traders are closely watching the situation, with rising crude oil prices and increasing capital flows to markets like China likely to influence the short-term outlook.
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