The international market is playing a pivotal role in driving up gold prices domestically, with Comex gold trading at $2,388 per ounce, reflecting a $48 increase from the previous closing price. Saumil Gandhi, a Research Analyst at hdfc Securities, attributed the record-high gold prices in delhi to the strong trend in foreign markets.

Geopolitical tensions, particularly in West Asia, have contributed to gold's status as a safe investment option, fueling increased demand and consequently driving prices higher. In MCX futures trading, gold reached an intraday high of Rs 72,828 per 10 grams.

However, the surge in gold prices due to geopolitical factors has led to a decrease in demand, according to jewellery retail company Senco gold Limited. The company noted that the rise in gold prices has impacted consumer purchasing trends, resulting in a 15-20% decline in sales in march and April. 

Despite implementing measures such as offering diamond-studded gold jewellery and consumer-oriented schemes, the company has struggled to offset the decline in demand. Suvenkar Sen, MD and CEO of Senco gold highlighted that gold prices have increased by 10% in the last 30 days and by 23-25% over the past six months, adversely affecting retail jewellery purchases.