Volatile geo-politics pushes up gold price to over 1L
Times of India | 18 June 2025
12 Kolkata: Gold prices in Kolkata reached a historical high on Monday amid volatile geopolitical conditions and the escalation of conflict between Israel and Iran. On Monday afternoon, the price of 24-carat gold, including GST, crossed Rs 1,03,000 per 10 gm. Although prices dipped marginally on Tuesday morning, orders with the city jewellers were minimal.The jewellers in Kolkata, already facing a slump in business, were anticipating volatility in the gold market after the Israel-Iran tension escalated. "The political risk has continuously been pushing investors towards gold — a safe haven for them. We witnessed similar volatility when the offensives between Ukraine and Russia increased. Since then, gold has been on an upward spike. The conflict between Israel and Iran has pushed it further," said Rupak Saha, zonal member of the Gem and Jewellery Trade Council of India.On Monday afternoon, the price of 24-carat gold, including GST, touched Rs 1,03,000 for 10 gm. The price dropped slightly by the evening. On Tuesday, it hovered around Rs 1,01,500 per 10 gm. In the past two months, gold prices increased from Rs 98,380 on April 17 to Rs 1,01,500 per 10 gm on June 17. Meanwhile, it breached the Rs 1 lakh threshold thrice."The conflict in the Middle-East and a strong dollar have fuelled the price surge over the last three to four days. Moreover, institutional buyers have also been purchasing gold in bulk. However, there could be some dip if the situation stabilises," said Anargha Uttiya Chowdhury, partner of Anjali Jewellers."We are facing a slump in business this season. Our bookings are now down by nearly 40% compared to May-June bookings last year. The biggest sufferers are the artisans who don't have any orders now. The flow of customers has stalled after the sudden price hike. There are enquiries, but that is not translating into business," said Shubadip Roy, zonal committee member of the All India Gem and Jewellery Domestic Council."This price volatility will continue as long as the geo-political situation stabilises. I feel buyers will purchase in phases as prices might go up even further. This will also increase sales of light-weight jewellery, and sales volumes will be hit," said Suvankar Sen, MD and CEO of Senco Gold Ltd.