For some time, there was a steady decline in the price of gold and the price of gold was 5 to 7 rupees below the level of one lakh rupees. Due to which the women of the country were taking a sigh of relief. On the other hand, economists from all over the world were expecting a fall in crude oil prices. One reason for this was that along with the US, OPEC countries also said to increase the production of crude oil. Apart from this, the stock market was once again seen. From the beginning of March to June 12, the Sensex gave the investors a 13 per cent return. At the same time, the rupee also saw a steady rise. Now the morning missile attack on Iran by Israel has changed this whole picture. Friday 13th, considered inauspicious in Western culture, once again showed its color. It would not be wrong to call it the black fride of the market once again. Where the stock market saw a decline of more than 1300 points in the morning. At the same time, the Nifty was also trading with a decline of 415.2 points in the morning.
On the other hand, tension spread throughout the Middle East due to bombing in Iran. The effect of which was seen in crude oil prices. Brent crude oil of the Gulf countries reached a two -month high. Apart from this, there was a tremendous rise in gold prices in the country. Due to geopolitical stress, investors considered it necessary to move towards gold as a safe investment. Gold prices in India not only crossed only one lakh rupees, but reached a record level. At the same time, the money market has also suffered heavy losses and it has once again crossed the 86 level. Let us discuss these four issues in detail.
Crude oil at the highest level of two months
There has been a tremendous jump in crude oil prices between Iran-Israel War. Brent crude oil prices rose by more than 13 per cent to $ 78.50 per barrel due to fears of tension and oil supply disrupted in the Middle East. Which is the highest level of two months. This is a major setback for countries that depend on imports for crude oil. India imports 85 percent of its needs. At the same time, American crude oil WTI has seen an increase of about 12 per cent, after which the price has reached $ 77.58 per barrel.
Crude oil (3)
Whereas a day earlier US oil prices were below $ 70 per barrel. The special thing is that in the month of June, the price of American oil has seen an increase of about 28 per cent, while the crude oil of Gulf countries has become about 23 per cent expensive. Experts in JP Morgan believe that the price of oil may increase by $ 120 in the worst condition. The bank said the attack on Iran could reach oil prices to $ 120 per barrel, leading to US inflation to increase by 5 per cent.
Gold prices at record level
On the other hand, gold prices have increased well in India as well as the international market. Due to geopolitical stress, there has been a rise in the price of gold. The price of gold on the country’s futures market Multi Commodity Exchange reached a record level with Rs 1,00,403 per ten grams. The special thing is that the price of gold on MCX saw a jump of Rs 2,011. Whereas the price of gold was Rs 98,392 per ten grams a day earlier. The special thing is that in June, the price of gold has seen an increase of Rs 4,528.
Gold price (17)
On the other hand, if we talk about foreign markets, then there has been a good rise in gold prices. According to the data, the price of gold in New York Comex market is trading at $ 3,437.80 per barrel with a sharp gain of more than one per cent. Whereas during the trading session, gold prices touched an intra-day high of $ 3,466.75 an ounce. At the same time, gold spot prices have seen a rise of about one per cent and the price was trading at $ 3,416.39. Whereas during the business session, the gold spot price reached $ 3,444.53 an ounce. The stock market has seen a big decline in the stock market on the other hand. The Bombay Stock Exchange’s major index Sensex was trading down by 550 points at 1:40 pm, but during the trading session, the Sensex was trading 1,337.39 points to 80,354.59 points. The special thing is that from the beginning of March till June 12, the Sensex has given the return of about 13 percent to the investors. At the same time, the Nifty, the main index of the National Stock Exchange, saw a sharp decline of 415.2 points and in the business session, the Nifty came to the lowest level of the day with 24,473 points. While the Nifty was trading at 24,730.75 points with a decline of 160 points at 1:42 pm.
Stock Market (64)
According to Dr. VK Vijaykumar, the main investment strategist of Geojit Investment Limited, sometimes bad news comes like floods. Just after the Ahmedabad aerial tragedy, the Israeli attack on Iran has been reported. If the attack by Iran and counter -attack continued for a long time, the economic consequences of this Israeli attack can be very serious. Israel has announced that this operation will last for several days. He said that the impact on the market will depend on how long the struggle lasts. The area using oil derivatives such as aviation, paint, adhesive and tires will suffer a major setback. Oil producers like ONGC and Oil India will remain flexible. The Nifty is likely to get strong support at the level of 24500.
Bond market under pressure
The Indian government bond yield reached a five -week high on Friday due to the rise in crude oil prices. Vigilance has weakened emotions before a weekly loan auction. India is a major importer of crude oil and high prices can increase inflation. The threat of unilateral tariffs by President Donald Trump within two weeks has increased uncertainty over the US-China trade talks, causing investors to shock more towards traditional safe-hevan assets.
Big fall in rupee
On Friday, the rupee fell 56 paise to 86.08 against the US dollar in early trade. After the Israeli attack on Iran’s nuclear sites, rising global oil prices and strong dollars pressurized the domestic currency amid growing tension in West Asia. Forex traders said that the weak start of domestic stock markets and heavy outflow of foreign capital also led to a decline in local currency. The interbank opened at 86.25 against the rupee at 86.25 against the dollar. After this it reached 86.08 per dollar, which is 56 paise less than the previous closed price. The rupee closed at 85.52 against the US dollar on Thursday. Meanwhile, the dollar index measuring the US dollar situation increased by 0.31 percent to 98.22 against six major currencies.
