Gold prices rise again after 'Operation Sindoor'

Gold prices in India witnessed a significant surge following the Indian Army’s air strikes on nine terrorist camps in Pakistan-occupied Kashmir (PoK) under Operation Sindoor. The military action, aimed at thwarting a planned terrorist attack against India, appears to have had immediate economic repercussions in the region.

In the aftermath of the strikes, the Pakistani stock market recorded a sharp decline, reflecting heightened investor anxiety. However, the most notable impact was seen in the bullion market, where gold prices surged dramatically.

On Wednesday, the price of 10 grams of 99.9% pure gold in Delhi’s bullion market soared to ₹1,00,770, compared to ₹99,750 on Tuesday—marking a steep ₹1,000 increase in just 24 hours. Similarly, 99.5% pure gold rose by ₹1.5, reaching ₹1,00,350 per 10 grams.

Market analysts attribute the sharp rise to increased demand for gold amid regional instability, as investors traditionally view gold as a safe haven during geopolitical uncertainty. The air strikes and subsequent warnings from Pakistan’s leadership have heightened market fears, leading to stronger gold buying.

Interestingly, while Indian gold prices climbed sharply, the international gold market saw a slight correction, indicating a divergence influenced by local sentiments and domestic demand.

Given the ongoing tension and market volatility, experts predict that gold prices may continue to rise in the near term, particularly if geopolitical conditions further deteriorate.