Kama Jewelry MD Colin Shah expects the demand for gold to remain buoyant due to the strong “sentimental value” attached towards buying gold during the festive season and the Indian culture of gifting jewellery during weddings.
The recent volatility in the stock markets has also prompted investors to look at a safer bet and gold appears to be the ideal asset. Besides, the gold also provides a hedge against the strengthening dollar as the rupee has been weakening, said a senior bank official.
As the Israel-Hamas war threatens to escalate into a wider geopolitical conflict involving the US and Iran, spot gold price hit $2,000 levels on Friday and closed at 2,006 per ounce levels.
Gold future contract on Multi Commodity Exchange (MCX) for December 2023 expiry surged Rs 308 per gm and ended at Rs 61,260 levels on Friday.
