MUMBAI: Gold prices firmed up on Monday by more than 1% as a volatile West Asia raised uncertainty in global markets with fears of inflation spiking. In late trades in Mumbai, gold was trading at around Rs 57,400/10gm on the spot market, up Rs 900 on the day. Gold is considered a safe haven asset during times of market uncertainties and inflation.
Silver, which like gold is also a precious metal and has haven characteristics in addition to its industrial use, also witnessed strong demand. Silver prices firmed up to Rs 68,400/kg from Rs 67,100 on Friday.
Gold prices rose on increased safe haven bids as tensions in West Asia ramped up in the wake of the Hamas attack on Israel, with alleged Iranian involvement raising concerns of a regional conflict, a note by Kotak Commodities said. In addition, there was also news that China had added to its gold reserves for the 11th straight month in September with its central bank’s holdings rising by 840,000 troy ounces, it said.
Silver, which like gold is also a precious metal and has haven characteristics in addition to its industrial use, also witnessed strong demand. Silver prices firmed up to Rs 68,400/kg from Rs 67,100 on Friday.
Gold prices rose on increased safe haven bids as tensions in West Asia ramped up in the wake of the Hamas attack on Israel, with alleged Iranian involvement raising concerns of a regional conflict, a note by Kotak Commodities said. In addition, there was also news that China had added to its gold reserves for the 11th straight month in September with its central bank’s holdings rising by 840,000 troy ounces, it said.
Outside of the impact of the Israel-Hamas war on the price of the yellow metal, it could affect the India-Israel trade in gems and jewellery in a major way. In fiscal 2023, gems and jewellery trade between India and Israel was worth a little over $2 billion, down nearly 27% from $2.8 billion the previous fiscal, said Colin Shah, MD, Kama Jewellery. In FY23, cut & polished diamonds were the biggest Indian exports to Israel.
