Perspective on Gold demand in the backdrop of the pause in US-Iran War by Mr. Colin Shah, MD, Kama Jewelry
Below the Perspective on Gold demand in the backdrop of the pause in US-Iran War by Mr. Colin Shah, MD, 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. While this reduces the risk premium, it simultaneously has made both international and domestic buyers vigilant and cautious when it comes to gold-buying. The good part is, this will encourage the fence-sitters to make a purchase and thus, smoothen the inventory pile-up ahead of the festive and wedding season.
This dynamic will lead to a rise in demand for light-weight plain and studded jewellery as buyers are taking a conservative and cost-effective approach given the uncertainties and a jittery track record of gold prices due to geopolitical tensions. Overall, consumer confidence reinstate gradually as the countries at conflict move towards a possible truce, and we will hopefully see the yellow metal regain its sheen to full potential.”
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