"Both the oil and gold price were up Monday morning, as the Strait of Hormuz and safe-haven assets became the point of focus for markets. Geopolitical crises like the one unfolding currently will invariably apply upward pressure on the gold price and that's precisely what is happening this time round."
"We are in a classic risk-off scenario and gold is the classic go-to asset. Gold was already benefiting from strong demand globally, not just from central banks but also retail investors keen to get exposure in an increasingly volatile geopolitical climate. That demand could now spike further as nations and individuals alike seek the safety of the world's ultimate store of value."
Gold prices rebounded above $5,400 per ounce following coordinated US and Israeli military strikes on Iran over the weekend. After a volatile start to 2025, with gold reaching $5,550 in late January before dropping to $4,700 in early February, the precious metal is climbing again alongside silver. The geopolitical escalation, including tensions around the Strait of Hormuz and retaliatory Iranian actions, has triggered a classic risk-off market scenario. Investors are fleeing to traditional safe-haven assets amid fears of regional escalation, oil supply disruption, and inflationary pressures. Market analysts attribute the gold rally to strong global demand from both central banks and retail investors seeking protection in an increasingly volatile geopolitical environment.
Read at Business Matters
Unable to calculate read time
Collection
[
|
...
]