The Iran conflict ignites gold prices.. Markets are preparing for an immediate rise and historic peaks
US and Israeli strikes on Iran have exacerbated uncertainty in Global markets, as investors are closely monitoring potential safe-haven flows into gold and metals, and potential movements in the markets as they return to work on Monday.
An immediate rise for gold
says analyst Edward Meir, commodity analyst at "Marix" For financial services: "I think we will see a sudden rally in most commodity markets, including gold and oil.
He added: "We may see a rise in Gold prices were around $200 per ounce at the opening, then gradually decreased during the day. Markets are relatively neutral to military conflicts; Investors only focus on whether Oilwill be affected, so once the initial rally is over, that rally tends to fade away."
Flow to safe havens
With markets closed on Saturday and Sunday, digital gold is currently trading at a premium to its intrinsic value, indicating a positive trend towards safe havens before markets return to action. Digital gold currently tops the list of gainers at $5,344 per ounce.
Hugo Pascal, precious metals trader at… "Inprovided": "Gold is likely to see higher than usual demand when markets open on Monday. Given the risks related to how long the conflict will last, which other countries may be drawn into it, and inflation fears, gold is expected to take its place as a preferred safe haven."
High Risk in Stocks
Analysts say that stock markets and other high-risk assets are likely to witness heavy selling, and investors will look for the best place to invest their money, and gold is likely to be at the top of this list.
Gold is on track to a new historic high
Fouad Rizqzadeh, a market analyst at "Forex. com": "There will be additional safe-haven gold demand, which could send prices rising to around $5,500 again, and possibly to a new record high beyond the January peak of around $5,600."
He added: "However, gold’s gains beyond this level may be limited by a potential rebound in the US dollar, especially if the price of crude oil remains sharply higher. I expect that the price reaction tomorrow will be initially positive, with the possibility of some decline later in the session depending on the development of events."
Ole Hansen, Head of Commodity Strategy at Ole Hansen, agrees "Saxo Bank" With this proposition, he said: "There is no doubt that this is a worrying escalation, and will push investors towards precious metals and the energy sector. The magnitude of the impact remains unclear, but given last week’s momentum, I would not be surprised if gold hits a new record high."
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