The growing tension between Iran and Israel has caused volatility in the global markets. After the missile attacks on Israel by Iran, gold prices in the country have shot up. Currently, the price of 24-carat gold has reached Rs 75,762 per 10 grams. Experts predict that gold prices could reach Rs 85,600 by December 2024, which shows an increase of about 13%.
International market situation
Gold prices are also expected to rise internationally. Fitch Solutions, Citigroup and Goldman Sachs have predicted that the price of gold could reach $3,000 an ounce by the end of 2024. Possible interest rate cuts in the US and rising geopolitical tensions are fuelling the demand for gold.
Indian stock market decline
The Indian stock market has also seen a sharp decline. The Sensex fell 1,769 points (2.15%) to close at 82,497.10 points, while the Nifty also broke important levels and fell to 25,250.10 points. This is the biggest fall in the last three months, with a total decline of 3,339 points.
Safe option for investors
In this situation, investors are now moving away from risky investments and moving towards safe assets. Gold, which is traditionally considered a safe investment in times of crisis, has now become an attractive option. Amid market volatility, the demand for gold is likely to increase, which can provide opportunities for long-term investment.
Other reasons
Crude oil prices have also risen, which can have a negative impact on countries like India. Apart from this, the impact of SEBI’s new strict rules and China’s economic package is also being seen in the Indian markets. All these factors together are affecting the market situation and forcing investors to new strategies.
