The ongoing Israel-Palestine war has now forced the gold market to make a sharp rebound with prices witnessing a rise in the last five days, to the discomfiture of customers. This has come at a time when the stock market has remained unstable, reports said.
The price of 10 grams of gold has become costlier by Rs 1,000 while its price was up by Rs 550 alone on Tuesday. According to the experts, the price spiral of gold and silver has encouraged investors to have faith in the bullion market where they feel safe to invest in the war situation.
According to reports, the price of the 10 grams of 22-carat gold in Bhubaneswar was Rs 53,000 on October 5 while the same is being sold for Rs 54,000 now. Now customers have to pay an extra Rs 1,000 per gram of gold while traders are reportedly making profits. However, the price is expected to escalate further.
Similarly, the price of silver is also on the rising trend. A kg of silver used to be sold for Rs 70,000, but its price has now touched Rs 71,000.
As for the hike in gold price, Pramod Rath, the marketing head of J&T Jewellers, Bhubaneswar, observed that the gold prices had seen an upward rise during the Russia-Ukine war.
“Since the Israel-Palestine war, we see a gradual hike in the gold prices. But we can’t say if it would push the price further. Customers should buy the gold now ahead of the upcoming festive season,” he adfed.
Rajib Sahu, an economic analyst, expressed almost similar view. He said, "Whenever the market is stable, investors feel safe to invest in gold. Now, they divert their investment from the stock market to gold. There are reasons for gold prices to rise whenever the market is unstable. Earlier, gold prices had gone up exponentially during the Russia-Ukraine war."