Gold prices soar! Safe-haven appeal, festive demand drive gold rates up Rs 1,500 in just a day; analysts expect further rise

Gold rate today: Gold prices reached a new peak of Rs 78,300 per 10 gm yesterday, driven by safe-haven buying amidst rising tensions in the Middle East and lower US bond yields.

Market participants anticipate further increases in the price of the precious metal if global geopolitical uncertainties escalate. Compared to Tuesday, prices surged by Rs 1,500 per 10 gm, according to an ET report.

According to Kumar Jain, spokesperson of the India Bullion & Jewellers Association (IBJA), "Zaveri Bazaar is buzzing with activity as there is a surge in gold prices. The footfalls have increased by up to 20% on Wednesday compared to a week ago."

He mentioned that the Navratri festival, starting on Thursday and lasting until October 12, is considered an auspicious time for purchasing gold. "As there is a possibility of prices further moving northwards, consumers are visiting stores to pre-book gold and take delivery during Navratri," he added.

The primary reason for consumers buying gold jewelry is the upcoming wedding season, which begins in November and extends until February-March.

The thriving demand has led karigars or goldsmiths to work for 12 hours daily, instead of their usual 8-hour shifts.

Jain commented, "It is the China moment for India. China had been buying gold to hedge against inflation. Now Indians too have turned to the yellow metal."

Bhargav Vaidya, a gold trade analyst, advised, "Previously, we would suggest that 15% of one's investment should go to gold. But, now since gold prices have started to give 18-20% return annually, the investment should go up to 25%."

Colin Shah, MD of Kama Jewelry, attributed the exceptional performance of gold to "the beginning of a rate cut cycle in the US, followed by strong anticipation for further rate cuts in upcoming US Fed meetings."

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