Ever since Hamas attacked Israel on October 7, gold has moved up sharply before stabilizing. However, experts have not ruled out a rise in prices. This comes at a time when Dhanteras and Diwali are just days away. How will gold prices behave during the festival season? In this State of this Economy podcast, MR Subramani talks to Navneet Damani, Senior Vice President and Head of Research for Commodities at Motilal Oswal Financial Services Limited, to understand the outlook for the precious metal.

The discussion primarily revolves around the surge in gold prices due to rising geopolitical tensions in West Asia. Damani explains that such events often lead to a spike in gold prices, citing previous instances like the Russia-Ukraine conflict.

He believes that gold prices are likely to remain stable in the short term in India, but notes that factors like inflation will also have an impact on the prices. He explains that agricultural trends influence will impact gold demand.

Regarding silver, Damani highlights a potential deficit in supply globally, with Chinese demand playing a significant role. He suggests that silver might outperform gold over the next 6 to 12 months.

He points out that the current conflict has led to a more moderate price increase for crude oil, compared to other past geopolitical events. He attributes this to a different economic and inflationary landscape. While some increase in inflation is expected, he doesn’t foresee a dramatic spike akin to 2022.

Host: MR Subramani, Producer: V Nivedita.

About the State of the Economy podcast

India’s economy has been hailed as a bright spot amid the general gloom that seems to have enveloped the rest of the world. But several sectors continue to stutter even as others seem set to fire on all cylinders. To help you make sense of the bundle of contradictions that the country is, businessline brings you podcasts with experts ranging from finance and marketing to technology and start-ups.