US-Iran Tensions Ease, Boosting Gold Demand Ahead of Indian Festive Season

The recent pause in hostilities between the US and Iran is expected to boost gold demand in India as prices cool down and volatility reduces, according to industry experts.

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

The softer prices are expected to encourage consumers who had delayed purchases to return to the market ahead of the festive and wedding season, helping clear inventories. Shah added that this will also make fence-sitters more likely to make a purchase, smoothing out inventory pile-ups.

Shah also mentioned that consumers are likely to remain value-conscious and increasingly opt for lightweight plain and studded jewelry as they adopt a conservative approach amid recent volatility in gold prices driven by geopolitical developments.