Israel-Iran-US War: Increasing tension in the Middle East caused a storm in the prices of gold and silver, silver became costlier by Rs 32000 and crossed Rs 3 lakh, gold rose by Rs 8100.

New Delhi. The increasing tension in the Middle East has caused a surge in gold and silver prices. After the deepening of the Iran crisis and the attacks by America-Israel (Israel-Iran-US War), investors quickly ran towards safe havens i.e. gold and silver.

Read:- ‘People of Iran Military Command want to surrender to save their lives…’ Trump’s claim amid fierce war in the Middle East

In Delhi bullion market, silver jumped by Rs 32,000 (silver price hike) in a day and directly reached Rs 3,00,000 (silver price today) per kg (including tax). On Friday it closed at Rs 2,68,000 (silver rate today). That means a jump of about 12% in one go.

Gold crosses Rs 1.72 lakh

Gold also did not lag behind. Gold of 99.9 percent purity strengthened by Rs 8,100 (gold price hike) to Rs 1,72,800 (gold price today) per 10 grams (including tax). In the last session it was Rs 1,64,700 (gold rate today). That means an increase of about 5 percent. That is, it is clear that as tension increased, the demand for safe investment also increased.

People made aggressive purchases

Read :- With whom will India side in the fight between US-Israel and Iran? PM Modi made it clear through his statement

According to Gaurav Garg, Research Analyst, Lemon Markets Desk, aggressive buying was seen due to increasing geopolitical tensions in West Asia. Panic increased in the market after the news of coordinated military attacks by the US and Israel on Iran over the weekend and the death of Iran’s supreme leader Ayatollah Ali Khamenei.

In response, Iran started targeting American bases in UAE, Bahrain, Kuwait, Qatar, Saudi Arabia, Jordan, Iraq and Syria. This has deepened the fear of instability in the entire region.

The picture was the same in the international market also. Spot gold jumped $124 to around $5,372 an ounce. Highest level in two months. Silver is trading around $92 an ounce.

HDFC Securities analyst Saumil Gandhi says rising tensions have given rise to strong ‘safe haven’ demand. Additionally, the market has become more nervous due to fears of threats to energy supplies and major trade routes.

What’s next: To invest or not?

Read :- Government of India should take immediate and first steps for the security of our people in the Middle East: LoP Rahul Gandhi

Experts believe that if you are thinking of investing money in gold amid stress, then remember that the faster the rise, the more sudden the fall.

Next week, America’s important economic data PMI, ADP employment data and unemployment data are to be released. This could lead to further price volatility as the market reassesses the Federal Reserve’s policies.

This means that it is clear that until the situation in the Middle East calms down, gold and silver can remain strong. But it is very important to understand the risk before investing. It is a safe haven, but jumping without a strategy can be costly.