US-Iran Ceasefire Boosts Gold Demand Ahead of Indian Festive Season

The pause in US-Iran hostilities has led to a decrease in gold prices and reduced volatility, creating an opportunity for buyers who had delayed purchases. According to Colin Shah, Managing Director of Kama Jewelry, the de-escalation in geopolitical tensions has eased the risk premium in gold prices.

This, in turn, is expected to support gold demand in India ahead of the festive and wedding season. The softer prices are likely to encourage consumers who had delayed purchases to return to the market, helping clear inventories before the festive season.

Shah noted that consumers will remain value-conscious and opt for lightweight plain and studded jewelry due to recent volatility in gold prices driven by geopolitical developments.