The global market witnessed a remarkable stability in gold prices despite the ongoing conflict between Iran and the United States, as well as the escalating tensions in the Middle East. The Strait of Hormuz crisis, which began on February 28, had already raised concerns about global oil supplies, but the gold prices remained unaffected.
According to experts, gold is usually considered a safe-haven asset during times of war, economic crises, or global uncertainty, leading to a surge in its prices. However, this time around, gold prices failed to show any significant increase despite the escalating tensions in the Middle East.
The recent attack by the US and Israel on Iran on February 28 had already pushed the global oil market to a critical point, with the price of oil breaching $100 per barrel. However, the gold market remained relatively calm, with the SPOT gold price remaining stable at around $5,001 per ounce.
Experts attribute this unusual stability to several factors, including the strength of the US dollar, the already high prices of gold, and the fear of rising interest rates. Remy Borzu, an economic expert, believes that gold is no longer considered a safe-haven asset and is now seen as a speculative investment.
According to experts, the gold prices are likely to change significantly if the US Federal Reserve announces a clear-cut interest rate cut or if the Iran conflict escalates and global economic risks increase.
In Pakistan, the gold market has also seen a steady decline in prices, with the price of gold falling by a significant margin for the third consecutive day. The State Bank of Pakistan has released figures on foreign investment, showing a decline in the country’s current account surplus.
The Secretary of Petroleum has stated that the conflict in the Middle East has affected the supply of petroleum, while the Chairman of the Cotton Yarn Forum, Ihsan ul Haq, has warned of a surge in cotton prices due to the increasing tensions.
In other news, the Iranian National Security Council’s chief, Ali Larijani, has passed away, and Russia has sent a condolence message to the Iranian government. A large number of government officials, military leaders, and representatives from various sectors of society attended Larijani’s funeral.
