Gold Prices Continue to Glitter Amidst Israel-Hamas War, Right Time To Buy the Yellow Metal?

Gold prices in India continued to rise on Wednesday as the price of the precious metal rallied in the international market amidst the Israel-Hamas War. In India, the price of 10 grams of 24-carat gold at the time of writing this article is Rs 61,800. The price of the same quantity of 22-carat gold is Rs 56,650 at the time of writing this article. Given the rally in the price of precious metal jewellery companies in India are expected to make a profit as the market is anticipating margin benefit on their buffer stock.

The domestic jewelry market usually sees an increase in demand for Gold due to fast approaching Diwali 2023 followed by the wedding season.

Globally, Gold prices climbed on Wednesday on the back of softer US Treasury yields. However, the gains made by Bullion's safe haven were limited as global leaders are trying their best to stop the Israel-Hamas war from spreading.

According to Reuters, Spot gold rose 0.3% to $1,975.61 an ounce as of 0227 GMT, while US gold futures were mostly unchanged at $1,986.70.

Gold price today in different Indian cities:

Today, the gold price in Delhi for 24-carat gold (10 grams) is Rs 61,950, while 10 grams of 22-carat gold in the national capital costs Rs 56,800. Remember that the gold rate in Delhi is at par with the price of gold in Chandigarh, Jaipur, and Lucknow.

Gold prices in Bangalore for 24-carat gold (10 grams) is Rs 61,800, while 10 grams of 22-carat gold in the national capital costs Rs 56,650. The gold rate in Bangalore is at par with the price of gold in Hyderabad, Kerala, and Kolkata.

Gold Futures, maturing on December 5, 2023, were unchanged at 60538 on the Multi Commodity Exchange (MCX) at 12:51 pm IST today.

It is often seen that gold rates usually rise when there is greater economic uncertainty and market volatility is high as investors turn towards safe-haven assets such as gold to prevent losses.