Easing of US-Iran Tensions Boosts Gold Demand in India

New Delhi [India], July 27 - The easing of tensions between the US and Iran is expected to boost gold demand in India as prices cool and volatility reduces.

Colin Shah, Managing Director of Kama Jewelry, said that the de-escalation of geopolitical tensions has reduced the risk premium in gold prices, creating an opportunity for buyers who had been waiting on the sidelines.

'The reported pause and de-escalation in US-Iran tensions have brought a temporary breather in terms of a natural cool-down in gold prices,' Shah said. 'This reduces the risk premium but simultaneously makes both international and domestic buyers vigilant and cautious when it comes to gold-buying.'

According to Shah, softer prices are expected to help clear inventories before the festive season.