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Kolkata: Gold price began moving upwards on May 9 after hostilities escalated between India and Pakistan. According to IBJA (India Bullion and Jewellers Association) data, the price of gold moved up from May 8 when it was at Rs 96,024 to Rs 96,647 on May 9. Market analysts indicated that the price could be in the range between Rs 94,500 and Rs 97,500, with a range of triggers to watch out for from escalating conflict between India and Pakistan and the ongoing tariff talks between the US and China in Geneva to resolve the tariff slugfest between the two biggest economies in the world.

Gold price this week

The gold price this week first moved up and then dipped only to move up again. Let’s have a look at the prices.

• May 9: Rs 96,647
• May 8: Rs 96,024
• May 7: Rs 97,493
• May 6: Rs 96,761
• May 5: Rs 93,734

Triggers for the price movement of gold

Market analysts think that the decision of the US Fed to hold key policy rates steady has signaled economic uncertainties. As a natural corollary it has boosted demand for the safe haven metal. Most important, the tariff uncertainty unleashed globally by US President Donald Trump shows no sign of ebbing, though he has decided to suspend it for 90 days.

One of the more prominent triggers is closer at home — the escalating India Pakistan conflict. The conflict has steadily risen in intensity over this week and one cannot rule out a full-scale military conflict. All these uncertainties have added to the safe-haven demand for the yellow metal. Another factor is the declining value of the Indian rupee against the US dollar. This week the Indian currency has gone down considerably against the greenback and it has added a pressure on the price. Notably, India is the second largest consumer of gold (after China) and imports a large part of the gold it consumes. Gold is the second biggest item on India’s import bill after crude oil.

The much-awaited US-China tariff talks are taking place in Geneva this weekend. If the talks are fruitful, the tension might ease a bit. However, if the discussions fail it could unleash another rally in the prices of gold which is near the historic peaks, analysts pointed out.

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