Bhubaneswar: Will gold prices cross Rs 70,000 mark?

Gold and silver are likely to be costlier for customers during the ongoing festive season as the Israel-Hamas war has been raging. To add to the worry of customers, the prices of the yellow (per 10 gm) and white metals (per kg) have spiked by Rs 4,000 in the last two weeks. Market analysts have predicted a further rise in prices in case the war gets protracted. 

The war is not the only factor affecting the prices of gold and silver. The growing demand for gold in the festive season is the other factor responsible for the surge in the price.  

According to reports, well before the Israel-Hamas war started on October 7, the gold prices were on a downward trend. After the war, the prices showed signs of surge.

On October 6, the price of 22-carat gold was Rs 52,600 per 10 grams and it surged to Rs 56,600 on Saturday. Similarly, the price of 24-carat gold has crossed Rs 62,000 now.

Mitesh Khimji, director of Khimji Jewellers in Bhubaneswar, while analyzing the situation, observed that before the Israel-Palestine war, the gold pieces were on a downward trend. “In fact, it was the lowest this year. As the war is raging, the gold prices are on the rise. Another factor is the festive season. At this time, demand for gold goes up in India."  

Customers also apprehend further rise in gold and silver prices.  Madhusmita Dhal, a customer in Bhubaneswar said, “In the days to come, gold prices will go up further. It is better to buy now,” she added.

Also Read: Israel-Palestine war pushes gold prices up; heydays for traders

Some experts pointed out that whenever there is economic instability in the world and a war situation arises, gold prices usually soar. This is because investors prefer gold over equity. As the war refuses to mitigate, there is a slim chance of gold prices coming down. 

Analyzing the market situation, financial analyst, Rajib Sahu, said, "Due to the ongoing war between Israel and Hamas, the prices of petroleum products and gold are rising. If more and more countries join sides, the war will linger on. If you observe the trend in the prices, there are no signs of prices coming down.” 

Some experts have predicted that if the war situation lingers on, the prices of the 24-carat gold may surge past Rs 70,000 per 10 grams. 

K. Badrinarayan Subudhi, MD of Rithvika Gold, said, “Uncertainty has gripped the world economy. If it is allowed to persist, there are high chances of gold and silver prices going up further. In case such a situation lingers, the price of pure gold may cross Rs 70,000.”