Gold Price Outlook: Navigating the Israel-Iran Conflict
Gold prices saw big changes last week due to rising tensions. (AI image)
Gold is Back in the Spotlight
Gold is getting a lot of attention again. This time, it’s due to the Israel-Iran conflict. When there’s trouble in the world, people often turn to gold. It’s seen as a safe place to put money during uncertain times.
But it’s not all about the conflict. Good news from US-China trade talks and strong US economic data have made gold less appealing to some. With gold prices going up and down, investors are wondering what to do next.
Expert Insights on Gold Prices
Manav Modi, a Senior Analyst at Motilal Oswal Financial Services Ltd., shares his thoughts on gold prices. He also gives advice to gold investors.
Big Changes in Gold Prices
Last week, gold prices went through a lot of changes. The growing tensions between Israel and Iran were the main focus, even more than trade talks and economic data.
Israel attacked Iran’s nuclear facilities and oil & gas infrastructure. Iran fought back strongly. This made the conflict much worse.
This situation has made people nervous. Many are turning to gold as a safe place for their money. Because of this, gold prices have gone up around the world. In India, gold even crossed the ₹1 lakh mark for the first time.
Mixed Economic News
Earlier last week, people were hopeful about US-China trade talks. Good US jobs data also made gold less attractive. But the conflict quickly changed this.
There’s also been mixed news from the US economy. This includes:
- Lower-than-expected Consumer Price Index (CPI)
- Stronger non-farm payrolls
This mixed news has made people unsure about what the Federal Reserve will do next. But many still think there’s a 68% chance of a rate cut by September.
Long-Term Demand for Gold
Meanwhile, China’s central bank has been adding to its gold reserves for seven months in a row. This shows that there’s still a strong demand for gold over the long term.
Overall, gold is still seen as a safe place for money. This is especially true with all the trouble happening in the world. People are watching the Middle East closely. Any new developments could affect gold prices.
Gold Strategy: Buy When Prices Drop
Disclaimer: Experts’ advice and views on the stock market and other assets are their own. These opinions do not represent the views of The Times of India.
