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Wednesday May 29, 2024

Gold price increases massively in US market after Iran attacks Israel

Gold prices to remain uncertain as crises in the Middle East deepen

By Web Desk
April 15, 2024
Gold prices reach all time high as Israel continues its genocide in Palestine. — Live Mint/File
Gold prices reach all time high as Israel continues its genocide in Palestine. — Live Mint/File

Gold prices reached new heights as geopolitical tensions deepen in the Middle East.

After Iran’s counter attack on Israel on Sunday night, Asian company stocks have fallen, as gold prices continue to rise, CNN reported.

Japan’s stock market index Nikkei 225 and South Korea’s Kospi both fell by more than 1%. 

Hong Kong’s Hang Seng Index have dropped by 0.8%, while, China’s Shanghai Composite Index rose by 1.2%.

As for gold, the price for spot gold has increased by 0.6% at $2,358 per ounce on Monday. On Friday it had reached an all-time high of $2,431 per ounce as fears of retaliation by Iran heightened.

In addition, oil prices fell on Monday, after it reached their highest levels on Friday.

As per analysts from Australia and New Zealand Banking Group (ANZ), "Heightened tensions in the Middle East amid a worsening geopolitical backdrop kept commodity markets on edge."

Furthermore, Iran’s entry into the Israel-Palestine conflict may disrupt oil supplies, further affecting prices.

They said: "The extent of that risk will likely be determined by the reaction of Israel’s government."

Jateen Trivedi, a research analyst at LKP Securities said: "Gold prices are largely driven by escalating tensions between Iran and Israel amidst the ongoing Middle East crisis. This geopolitical uncertainty has fuelled a rush into safe-haven assets, propelling gold prices up by 1.60%."