NEW DELHI – Just as Indian households were beginning to breathe a sigh of relief over stabilized LPG supplies, a new “yellow fever” has hit the markets. On Wednesday, March 18, gold prices in India shattered all previous records, with 24-carat gold soaring to a historic peak of Rs 1,65,820 per 10 grams in the national capital.
The sudden spike has stunned buyers who were waiting for a “dip” to make wedding purchases. In just 24 hours, the price of 22-carat jewelry gold the benchmark for most Indian families jumped to Rs 1,52,000, marking one of the steepest single-day climbs in recent history.
Why is this happening?
While the US-Israel-Iran war has entered its third week, the “safe haven” appeal of gold has reached a boiling point. Investors are moving their money out of risky stocks and into gold as a shield against global instability.
According to LatestLY, two major factors triggered today’s rally:
The Hormuz Shutdown: Iran’s new leadership has hinted that the Strait of Hormuz could remain closed indefinitely, spooking global markets.
Weakening Dollar: As the US Dollar loses steam against major currencies, gold (which is priced in dollars) has become more expensive for international buyers.
Chaos in the Jewelry Markets
From Mumbai’s Zaveri Bazar to Delhi’s Karol Bagh, jewelry stores reported a strange mix of “panic selling” and “desperate buying.” While some families are rushing to sell their old gold to cash in on the high rates, those with weddings scheduled for late March are in a state of shock.
IT Giants Hit by LPG Shortage
In a related “war impact” story, the energy crisis has reached the corporate world. The Hindu reports that IT giants like Infosys, TCS, and Wipro have started scaling back their canteen services. Due to the 17% slump in LPG consumption this month, these companies are reportedly struggling to secure enough commercial cylinders to feed their massive workforces, leading to limited menus and a shift toward “cold meals” or electric induction cooking.
What’s Next?
Market analysts are divided. While some believe gold could touch Rs 1.75 lakh if the Middle East conflict escalates further, others suggest a correction is overdue. For now, the “common man” is caught between a record-high gold rate and a restricted kitchen budget.
