Gold Rate: Why is gold and silver cheap even when the war is going on? Why are prices falling?

• Gold and silver prices have fallen since the war began
• Why aren’t gold and silver prices rising?
• What will happen in the future?

Gold Rate: Due to the war in West Asia, oil and other prices are rising sharply. Which seems to affect the whole world and the supply. All this has disrupted global supply. The Strait of Hormuz blockade has disrupted global energy supplies by 20%, putting continued pressure on oil and gas prices.
With all this rising, investors expected gold and silver prices to rise as well. Because whenever geo-political tension rises, there is a big difference in the price of gold and silver. But while there are global movements, gold and silver prices are stable. Since the ongoing war between Iran, America and Israel, the price of gold and silver has not seen any significant increase. But what is the reason behind this?

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A decline since the war began

Gold and silver prices fell sharply on the MCX on Friday. 10 grams of gold fell by nearly Rs 100 to close at Rs 158,400, while silver fell by Rs 8,683 to Rs 259,279. Gold and silver reached all-time highs before the war began, but have been falling since the war began.
Gold price has hit a record high of Rs 1.93 lakh so far while silver has touched a record high of Rs 4.20 lakh. But looking at today’s rates, gold has become cheaper by Rs 34,600 and silver by Rs 1.60 lakh.

Why aren’t gold and silver prices rising?

The closure of the Strait of Hormuz has sharply increased the risk to oil prices. WTI crude oil prices have risen from a low of $60 a barrel to a high of $110 a barrel, raising the possibility of global inflation. Moreover, global investors are turning to the safe-haven currency, the dollar, which has strengthened in recent weeks.
Despite geopolitical tensions, a strong dollar and rising inflation are holding back gold prices. High interest rates and a strong dollar have a negative impact on gold prices, leading to recession and stagnation. Similarly, silver does not experience similar growth. Moreover, as the dollar strengthens, gold and silver prices are falling.

What will happen next?

Experts say that gold prices could rise by 15 to 20 percent by 2026. If the US economy shows signs of a recession, it could increase significantly. But if the US economy strengthens, gold and silver prices may fall.

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(Note: Before investing in gold, silver or any other asset, please consult a qualified financial advisor.)