Gold prices have witnessed a sharp correction recently, dropping from a record high of ₹1,01,530 per 10 grams on April 22 to ₹96,530 by May 3—a decline of ₹5,000, or approximately 5%, in the past 10 days. On Wednesday, gold prices are hovering around ₹99,840 per 10 grams in Ahmedabad. On the Multi Commodity Exchange (MCX), gold closed at ₹97,491 per 10 grams, marking a significant gain from the previous day.
“Gold is a cozy blanket during a storm. Whenever the world sees unrest, it is natural tendency for gold prices to go up being a safer asset. Prices would likely rise, but how much depends on how bad things get. A minor skirmish might not shake gold prices. ‘Operation Sindoor’ is likely to be neutral for gold. Gold is more driven by developments in China, Middle East and US,” said NS Ramaswamy, Head-Commodity desk & CRM, Ventura.