Gold Surges to Rs 1 Lakh Amid India-Pakistan Tensions Post 'Operation Sindoor'
- Gold price hits Rs 1,00,715/10g amid rising India-Pakistan tensions after ‘Operation Sindoor’
- Investor rush for safe-haven assets due to geopolitical uncertainty, weak rupee, and strong global gold rates
- Jewellery demand spikes as buyers anticipate further hikes; Finance Ministry monitors the situation
Indian gold prices touched an all-time high Rs 1,00,715 for 10 grams, as tensions between India and Pakistan mounted after India began a military action, named 'Operation Sindoor'. This is just the second time that gold has broken the Rs 1 lakh mark, with investor fears rising in the face of uncertainty over geopolitics.
The swift rally is indicative of increasing demand for safe-haven assets, with investors looking for cover against potential financial uncertainty. The worsening diplomatic relations and apprehensions about increased conflict have seen many divert funds into bullion, long considered a safe store of value during times of uncertainty.
Experts in the market point to the increased move not just due to growing local tensions but also because of outside influences like a declining rupee and firm overseas gold prices. Jewellers in metro areas have reported higher footfalls, with buyers in large numbers flocking to buy gold ahead of further increases.
Although the government has yet to officially remark on the market developments, it is said by sources that the Finance Ministry closely watches the developments. Experts warn that if conflict between the two countries continues or increases, the prices of gold might rise further in the following weeks, both for retail investors and the jewelery trade.
The market waits in suspense for the next turn of events.
