Gold Prices Likely to Rise in India Due to Israel-Hamas Conflict and Festive Season Demand, Though Fed Tightening May Limit Upside

Gold prices may increase further due to the Israel-Hamas war as investor sentiment and oil prices play a big role.

Gold has regained its safe-haven status following the escalation of the Israel-Hamas conflict.

Higher oil prices may spur inflation pressure in India and weaken the Rupee, making gold more attractive as an investment hedge.

Festive season demand may also push gold prices up in India.

However, US economic data indicates the Fed will continue tightening, keeping bond yields and upside on gold prices capped.