US-Iran Tensions Escalate: Impact on Gold, Silver, and Indian Markets | Quick Digest

US-Iran Tensions Escalate: Impact on Gold, Silver, and Indian Markets | Quick Digest
Escalating US-Iran tensions, fueled by military build-up reports and ongoing protests in Iran, are poised to significantly influence global commodity and stock markets. Experts anticipate a rise in gold and silver prices as safe-haven demand increases, while the Indian stock market may experience negative sentiment.

Reports indicate a potential US military build-up amid escalating Iranian protests.

Geopolitical uncertainty is expected to drive up gold and silver prices globally.

Indian stock market faces potential negative impact and increased volatility.

Experts forecast gold to reach $4550/oz (COMEX) and ₹142,000/10gm (MCX).

Silver prices are predicted to hit $82-$85/oz and ₹256,000-₹260,000/kg (MCX).

Iran has warned of targeting US military assets if attacked.

Geopolitical tensions between the United States and Iran are rapidly escalating, with reports indicating a potential US military build-up in the Middle East and ongoing anti-government protests across Iran. This volatile situation is expected to have significant ramifications for global financial markets, particularly gold, silver, and the Indian stock market. According to analysts, the perceived rapid military build-up around Iran's borders is creating a 'sentimental impact' across various assets. Commodity market experts, including Avinash Gorakshkar and Anuj Gupta, anticipate that gold and silver, traditionally considered safe-haven assets, will witness an upside momentum. Specific forecasts suggest gold prices could reach $4550 per ounce on COMEX and ₹142,000 per 10 grams on India's Multi-Commodity Exchange (MCX). Similarly, silver rates are projected to climb, potentially touching $82 to $85 per ounce and ₹256,000 to ₹260,000 per kilogram on MCX, driven by both safe-haven demand and increasing industrial applications. Conversely, the Indian stock market is bracing for a potential negative impact and increased volatility. Analysts believe the escalating conflict may lead to a flat to negative opening for Indian equities. The market had already closed in negative territory for five consecutive sessions preceding these latest developments. Furthermore, concerns over potential US tariffs on Indian oil imports, a separate but related geopolitical factor, could further pressure export-driven sectors in India. Iranian officials have issued stern warnings, stating that US military centers and shipping in the region would be considered 'legitimate targets' if the Islamic Republic is attacked, further heightening global uncertainty. The situation remains fluid, with investors closely monitoring developments for further market cues.
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