Yellow metal volatility hits Amritsar traders, customers

After escalation in the Israel-Iran aerial conflict, besides the ongoing Russia-Ukraine war driving up the gold price above Rs 1 lakh per 10 gm, there has been a sharp decline in the sale of gold jewellery in the domestic market.

- 

Jeweller Vijay Mehta said gold prices soared as investors flocked to safe-haven assets due to geopolitical shocks. Consequently, the sale of gold ornaments came down to half as small and medium buyers vanished from the market. He warned that a prolonged and intensified conflict in the West Asia would have ramifications not only for gold, but also on fossil fuels, natural gas and other products.

Volatility in the international market will trigger significant inflationary trends in other sectors as well.