By Admin 
Gold-Silver Price Surge: The headlines about preparations for war between America and Iran and Donald Trump’s announcement of 15 percent global tariff have further increased the demand for safe investment in the form of gold and silver. The situation is that today at around 9:05 am, April gold futures on MCX reached Rs 1,60,600 per 10 grams, which is Rs 3,700 or 2.4 percent more than Friday’s closing price.
At the same time, on MCX, silver contracts for March delivery were seen trading around Rs 2,68,120 per kg, up by 6 percent or Rs 15,200. On COMEX too, gold prices increased by 2 percent or $109 and were currently trading at around 5,189.60 per ounce. Silver was also seen trading around 87.505 with a sharp rise of 5.16 or 6 percent per ounce.
Tension between America and Iran
In fact, the ongoing conflict between US-Iran is having a huge impact on the global equity market, a glimpse of which was seen on Thursday when heavy selling pressure was seen on the Indian benchmark index. On Friday, Trump again warned that if Iran failed to properly negotiate a nuclear deal, war could break out.
In this sequence, the American Army is being heavily deployed in the Middle East. These include 13 warships like aircraft carrier USS Abraham Lincoln, frigate destroyer. Apart from this, the world’s most dangerous nuclear aircraft carrier USS Gerald R Ford has also been spotted entering the Mediterranean Sea. America has also deployed dozens of fighter planes in the Middle East.
Uncertainty in global trade
Meanwhile, the US Supreme Court declared the tariffs imposed by Trump around the world illegal. After this, Trump signed documents to impose 10 percent tariff on imports from all countries. Then suddenly on Saturday they increased the tariff to 15 percent. Due to this, there is an atmosphere of uncertainty in global trade at this time. In such an environment of stress, people are withdrawing money from the stock market and investing it in safe investments like gold and silver.
Why is gold and silver the first choice of investors?
The history of gold and silver has been reliable. In an environment of uncertainty, companies may go bankrupt and their share prices may fall. On the contrary, history has witnessed that in difficult circumstances the value of gold starts increasing instead of decreasing. The value of gold and silver has remained the same for thousands of years. When inflation increases, their prices also increase, which increases your purchasing power, hence in times of crisis, gold is the first choice of investors.
Another reason for the increase in demand for gold and silver is that the relationship between the stock market and the gold market is inverse. In an uncertain environment, when the stock market falls, the gold market rises. Then investors place bets on gold and silver by selling shares to reduce losses and balance their portfolio. Apart from this, cash can be withdrawn by selling gold immediately, which is very useful in times of crisis. These are the reasons why gold and silver have remained the first choice of investors for years.
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