Amid ongoing military conflict between Iran and Israel, financial markets globally have caught in a turmoil. Over the weekend, Iran launched a massive attack on Israel using hundreds of drones and missiles in what it called a response to a strike on its consulate in Syria. The geopolitical tensions in the Middle East have created jitters among investors who are now looking to stay away from riskier assets and taking refuge in gold due to its safe-haven appeal.
On Monday, the Indian stock market tanked over 1% at open with benchmarks Sensex and Nifty plunging over 900 points and over 250 points, respectively, after military tensions in West Asia sent ripples across financial markets. Cautious investors indulged in sell-offs across sectors in the Indian equity space, helping the gold strengthen its position. Due to its safe-haven status, the precious metal has attracted investors in the wake of the Iran-Israel war.
Also Read: Iran-Israel War: How this will hurt your investment portfolio
Gold (24-karat) was trading near the key 75,000-level per 10 grams on Monday. Gold price has surged by nearly 30% in the last 6 months and over 13% this year, outperforming equity benchmarks Sensex and Nifty by a fair margin. Market experts expect gold to rally further keeping in view the current geopolitical situation.
Speaking on the gold price dynamics due to geopolitical tension, Colin Shah, MD, Kama Jewelry, said, “Primarily, the untamed and volatile price trend of the yellow metal breaching new highs, in the backdrop of the recent Iran-Israel conflict has led to investors withdrawing from riskier avenues and reinvesting in gold.”
Given the scenario of looming escalations between the countries in conflict and the response by
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