India Gold Demand Seen Rising on Easing US-Iran Tensions
The easing of tensions between the US and Iran may lead to increased gold demand in India as prices cool, experts predict. The pause in hostilities has reduced the risk premium in gold prices, creating an opportunity for buyers who had been waiting on the sidelines.
Colin Shah, Managing Director of Kama Jewelry, believes that the softer prices will encourage consumers to make purchases ahead of the festive and wedding season. He notes that consumers are likely to opt for lightweight plain and studded jewelry as they adopt a conservative approach amid recent volatility in gold prices driven by geopolitical developments.
Manav Modi, Commodities Analyst at Motilal Oswal Financial Services, says that gold prices remain supported by a weaker US dollar despite easing geopolitical tensions. He notes that investors are now focused on the US Federal Reserve's policy meeting later this week, which is likely to be the key driver for gold prices in the near term.