Recent events have reignited tensions between Israel and Palestine, escalating gold prices on the Multi Commodity Exchange (MCX) in India. Gold is currently trading at Rs 57,883, with silver at Rs 69,663, in the futures trading market. Over the past four days, gold prices have surged by Rs 1500, and silver prices have risen by Rs 3900.
India’s Festive Season and the Anticipated Gold and Silver Demand
Historically, gold and silver prices tend to rise during times of geopolitical unrest, such as conflicts between nations. During peaceful periods, major investors typically channel their funds into the stock market for higher returns. However, when conflicts arise, investors pivot to safer assets like gold and silver, viewing them as a hedge against potential losses in equities.
India, being one of the largest consumers of gold, also contributes to the surge in gold and silver prices. With the festive season, including Navratri starting from October 15, followed by Dhanteras, Diwali, and the wedding season, approaching, demand for gold and silver is anticipated to rise. This cultural inclination towards gold purchases during festivities is expected to further boost prices in the Indian market.