Gold Prices Up, Warning On Petrol: What’s Happening?

Indian Prime Minister Narendra Modi had instructed the people of the country to be extremely watchful about the current scenario. He called for reduced dependence on petrol and diesel while also advising the public not to buy any Gold for the next year.

These are preventive measures in the case of a potential energy of lockdown due to the prevailing situation between Iran and the United States.

In terms of conflict or crossfire, there is very little activity happening between Iran and the United States, but the rivers of the trade cut-off are being felt now. The Indian authorities have recently indicated that the stock of petrol and diesel are limited, which would warrant a peculiar situation shortly.

And just a couple of days after the speech from Prime Minister Modi, where he advised the public to refrain buying gold, the Indian government has increased the import duty on the same.

Gold rates just saw a historic single-day jump after the Centre doubled the import duty. 24-carat gold is up by a massive ₹13,910, now trading at ₹1,67,890.

Gold futures on MCX jumped Rs 9,206, or 6%, to Rs 1,62,648 per 10 grams in early trade. Silver futures also rallied strongly rising Rs 16,743, or 6%, to Rs 2,95,805 per kg as of 9 am.

The global trade economy has taken a big jump due to the ongoing conflict between Iran and the United States. Considering the prolonged nature and global logistics associated with the same, it has started to cast its effects on India, which was largely unaffected by this till now.