Tension has increased in the Middle East. Israel has attacked Iran with the support of US. Iran is also retaliating. Global tension has increased further due to the outbreak of war against Iran. The attacks by US and Israel on Iran have further increased the concern of investors. Inflation, which is already breaking records, is expected to increase further after this war. The attack on Tehran is also affecting the global commodity market.
What is the price of gold and silver?
On MCX, the price of gold is trading at ₹1.62 lakh per 10 grams, while there has been a historic jump in the price of silver. The price of silver has increased by ₹ 15,580 per kg in one stroke to ₹ 2,75,249 per kg. The price of silver has increased by a record 6%, and it is going to increase further. It is noteworthy that on January 29, gold had reached its all-time high. Gold price reached lifetime high of ₹1,93,096 per 10 grams and silver price of ₹4.20 lakh. Iran Attack: Attack on Iran, big crisis on the ‘lifeline’ of oil due to Middle East War, petrol in India crosses ₹ 200? There is turmoil in shares and gold everywhere.
What effect will the attack on Iran have on gold and silver?
On Saturday, Israel fired missiles at Iran with US support. The President’s Office, Intelligence Office, Airport and government houses were targeted. This attack has sparked a war in the Middle East. Russia-Ukraine War, tension between Afghanistan and Pakistan and now Israel’s attack on Iran have increased geopolitical tension. Whenever global tension increases, the prices of gold and silver increase first. Gold, which is considered the safest, attracts investors and with increase in demand the prices increase further. This time also the situation is similar.
During geopolitical instability, gold and silver become the safest options for investors. As global tension increases, and risks increase in the stock market, investors leave the market and invest their money in gold. This clearly means that the prices of gold and silver are expected to increase further in the coming days.
What are the other factors responsible for the increase in gold and silver prices?
Apart from the attack on Iran, the lack of clarity on US tariffs has created volatility among investors. Global tensions are weakening the US dollar. A weak dollar pushes up gold and silver prices. Additionally, Central Banks around the world are buying gold and silver. Central banks are making these purchases to prevent inflation and economic instability. It is natural for prices to increase due to increasing demand. Silver’s safe investment status and its industrial uses are contributing to the strengthening of prices. Experts believe that until peace returns to the Middle East, gold and silver prices are expected to remain high.
