Global Equity Markets Under Pressure Amid US-Iran Tensions

The ongoing US-Israel-Iran war has led to a sell-off in global equity markets, with the Indian stock market not being an exception. The Nifty 50 index broke below the psychological 23,000 mark but recovered to touch an intraday high of 23,284. In contrast, the MCX gold rate witnessed a sharp sell-off, oscillating around ₹1,55,000 per 10 gm, while the MCX silver rate lost over 2.50% during Monday dealings.

Gold and Silver Rates Falling Amid Inflation Fears

The decline in gold and silver prices can be attributed to rising inflation fears worldwide, fueled by uncertainty surrounding the US-Iran war. This has led to a minimal chance of a US Fed rate cut, which has worked as a taper for the gold and silver price rally. Additionally, the lower demand in Saudi Arabia, where gold prices are available at a discount of $30 to $40 per ounce, accounts for 20% to 25% of global gold demand, contributing to a sideways move in gold and silver rates.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Investment Strategies Amid US-Iran Tensions

Investors are advised to book profit in gold and silver and start accumulating quality stocks available at a discount. A calibrated investment in data centre, IT, and banking stocks is recommended. Investing in the Nifty 50 ETF is also a good option, as it is expected to rise by 5% to 8% by the end of April 2026.

Key Figures:

• ₹1,55,000: MCX gold rate per 10 gm
• ₹2,52,500: MCX silver rate per kg
• 23,000: Psychological mark for Nifty 50 index
• 23,284: Intraday high for Nifty 50 index
• $30 to $40: Discount on gold prices in Saudi Arabia
• 20% to 25%: Global gold demand from Saudi Arabia
• 5% to 8%: Expected rise in Nifty 50 ETF by April 2026