Gold Prices rise in India due to ash cloud

Gold Prices have risen in India as a result of the effects of the ash cloud on European flights.

That is according to traders and dealers in the country, who suggest that supply has been affected on the subcontinent as shipments of the precious metal from Europe remained grounded, according to Reuters.

It is also suggested that Gold Prices have been affected by the increase in demand for the precious metal ahead of the looming festival season.

The news provider said: "India spot Gold Prices edged higher … on expectations of limited supplies of the yellow metal ahead of festivals next month, dealers said.

"Disruption of flights in Europe has hit gold shipments to India, potentially pushing up local prices ahead of a gold-buying festival next month"

Meanwhile, analysts at Action Economics have suggested that economic optimism is having a positive impact on the commodities markets, according to Market Watch.

They told the news provider: "Upbeat earnings results have reinforced economic recovery hopes and boosted the outlook for commodities generally."

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