Dear Friends,
We are all aware that the markets are bleeding due to this Iran-US-Israel War.
Whenever during the wars and the geo political tensions, most of the investors pulled the money from Equity markets and invest in precious metals.
The Precious Metals Price Rise: Safe Haven or Geopolitical Confusion?
Today’s market is witnessing huge swings. As of this morning, gold is up 1.20% and silver is up 2.51%. While the gains may look good on the screen, the underlying reasons behind them are a reflection of global tensions.
What’s behind the surge?
The escalating conflict between the US, Iran and Israel is the primary reason for the price rise.
With reports of US submarine movements and possible NATO forces involvement, investors are shifting their money towards safe-haven assets like gold and silver.
They also enter into the Crude Oil.
Gold: Currently trading between $5,080 - $5,150 an ounce. It acts as a great hedge in times of war and uncertainty.
Silver: An ounce is trading between $82 - $84. This proves once again that silver is always faster than gold ("Gold on steroids").
Market Tensions
While the price is on the rise, it is not a straight line. There is currently a fierce competition between two main forces:
The bullish Factors: Geopolitical risks, rising crude oil prices (above $80 a barrel), and persistent inflation fears.
The bearish Pressures: The US Dollar Index has reached a multi-month high and prices are falling slightly due to profit-taking as Treasury yields rise.
Future Forecast
Analysts expect gold and silver prices to continue to rise in 2026. If tensions persist, gold could touch $5,500. However, silver prices are likely to be volatile, depending on its professional needs.
My opinion:
In times of war, metals like gold can be a safe haven for various reasons.
But traders are in for a "Buy the Rumor, Sell the News" trap.
Keep a close eye on the dollar if the dollar continues to strengthen, any news could halt this rally.
Stay in control.
It is wise to be patient and not chase after stocks that have gone down.
If you want to invest in good stocks and not miss the opportunity, it is better to divide your investment into four parts.
Don't just watch the news, watch the charts.
Have a great investments and profits!