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Price of gold rising as wedding season comes into focus
The world of precious metals can be a confusing one to follow, even for veterans of the commodities industry. However, one trend that tends to stick around for the long-term would be that of the price of gold rising to meet the wedding season. The price of gold regularly goes up by a considerable margin as the world enters what is typically referred to as wedding season – and this year looks to be no different than before.
This is most prominently felt in India when wedding seasons can push up the gold price locally and afar significantly. Indeed, the gold price in India has risen to as much as $1945 per ounce. This is a high rise, but some experts predict that if the price continues to rise and goes beyond $2000 per ounce, we could be looking at a long-term change in gold pricing.
Indeed, commodity market experts believe that the gold price could be prolonged due to a longer wedding season. A mixture of COVID-19 causing people to delay weddings and people looking to spend savings hoarded during the pandemic on jewellery means that the gold price could stay on the high side for some time. The gold price was in a consolidation zone for a period of time there, with a high interest rate in America expected to keep the upside of gold prices in relative demand.
However, precious metals are also seeing a rise in price due to the conflict in Ukraine. A global collection of issues, then, has seen the likes of gold prices checker SD Bullion raise the flag that gold is beginning to hit a consistently high price range.
Will gold stay high for the Indian wedding season?
It certainly looks that way. Though the gold market can be somewhat volatile in recent times due to the pandemic, most experts in India and beyond expect the Indian wedding season – and high weddings elsewhere around the world – to keep gold prices high. People want to celebrate their special event with some golden jewellery to mark the occasion; this helps to drive up the supply-demand factor considerably.
For that reason, it should come as no surprise that gold is expected to stay at a relatively high price for the foreseeable future. Additional sanctions against Russia from major western political powers, though, could help to further increase global inflation across many markets. This could create a ‘safe-haven demand’ for gold, which will only increase the cost of this material further.
It is an interesting development for the economic world to see so many returning to buying luxury items like gold jewellery again after a period of a relative downturn due to the pandemic. However, with the price increasing so high in this period of demand, the increased cost could be enough to put some people off from getting involved.
For those intending to invest in jewellery for the wedding season, though, expect prices to be higher than they were in recent years.
This article does not necessarily reflect the opinions of the editors or management of EconoTimes