Yemen bombings to cast an ominous shadow on Akshaya Tritiya

The crisis in the Middle East has a far reaching effect on auspicious Akshaya Tritiya festival and the upcoming wedding season in India. As per a news report by The Economic Times, Saudi Arabia's air strike on Yemen a few days back, which has killed dozens, have pushed up gold prices by Rs 700 per 10 gm. With the tension in the Middle East intact, gold prices might be dearer by a few hundreds in sometime.

The financial daily has also informed that the Modi government’s proposal to submit PAN details for purchases over Rs 1 lakh worth of gold may add to the worries of the customers.

Talking to the ET, Ishu Datwani, founder, Anmol Jewellers, said: "The Saudi Arabia-Yemen crisis and the weakening of rupee against dollar will have a cascading effect on gold prices. The yellow metal may become precious during Akshaya Tritiya."

However the jewellers don’t seem much worried. "Last Akshaya Tritiya, prices of gold was Rs 29,000 per 10 gm. But even at that level, people bought gold.If prices go up, it creates a positive sentiment among people. They buy gold in anticipation that prices will go up further," Saurabh Gadgil, managing director of Pune-based PN Gadgil Jewellers, told the ET.

Gold price was hovering around Rs 27,000 per 10 gm yesterday.

(Image: Reuters)