Blame it on Israel’s war declared against Hamas and global economic uncertainty.; Domestic spot gold prices have zoomed by ₹4,150 per 10 grams this month to ₹60,825 on Friday from ₹56,675 on October 3.
Gold has been rising steadily from a low of ₹56,539 on October 6 and touched a high of ₹60,984 on Thursday, according to Indian Bullion and Jewellers Association.
The rise comes when the jewellers prepare for Dhanteras on November 10, an auspicious occasion to buy gold and peak festival sales followed by wedding season.
Globally, the yellow metal has rallied from a low of $1,871 an ounce in September to $1,990 on Thursday as the ongoing Israel-Hamas entered 20th day and rising tension in the Middle-East, fuelling geopolitical uncertainties besides the strengthening of the dollar.
Given the geo-political developments, gold prices would have increased much higher if not for the RBI intervention in the forex market to prevent rupee depreciation against the dollar amid heavy sell-off by foreign portfolio investors in the equity markets.
Somasundaram PR, Regional CEO, India, World Gold Council, said gold demand faces many headwinds, including the fall in domestic savings, stock market volatility and mixed signals on rural demand from FMCG sales.
However, he said the significant footfalls on jewellery B2B events in recent times and rising GST collections make this festive quarter for gold look very positive but with significant challenges.
Suvankar Sen, Managing Director, Senco Gold Diamonds, said customers are gearing up to take full advantage of the company’s flexi gold price scheme, which allows them to lock in gold price by paying the cost of their favourite jewellery and taking delivery on Dhanteras.
They can buy more gold if the prices go down on Dhanteras, and if it goes up, they get to buy at their locked-in price, he said.
Colin Shah, Managing Director, Kama Jewelry, said with the festive season and wedding season fast approaching, the price dynamics to be a little hindrance for gold buyers owing to the rise in per-capita income and the sentimental value attached to buying gold during the festive season and weddings.
Prithviraj Kothari, Managing Director, RiddiSiddhi Bullions, said the fundamental and technical landscape has improved the long-term bullish view on gold to trade at least 10 per cent higher from the current levels by next year, and this should propel the demand during Dhanteras the best time to buy gold.