US-Iran Tensions Easing Boosts India's Gold Demand Ahead of Festive Season

The recent easing of tensions between the US and Iran has led to a decrease in gold prices, creating an opportunity for buyers who had delayed purchases due to volatility.

According to Colin Shah, Managing Director of Kama Jewelry, '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.' He added that this reduction in risk premium will encourage consumers who had been waiting on the sidelines to make purchases ahead of the festive and wedding season.

Shah noted that despite softer prices, consumers are likely to remain value-conscious and opt for lightweight plain and studded jewelry as they adopt a conservative approach amid recent volatility in gold prices driven by geopolitical developments. He also mentioned that this will help clear inventories before the festive season.