US President Donald Trump has announced a ceasefire between Israel and Iran. However, Iran has not yet confirmed this openly and Israel has agreed to it. However, as soon as the news of ceasefire, many types of questions have started to arise in the minds of investors. A question is coming in the minds of my readers whether gold shopping for safe investment is now over? Has Gold investors’ dream of earning more than average shattered?
Talking about both the questions of the investors, their fear has increased due to the sharp fall in oil and gas prices. This means that there is no longer worry about inflation. My idea about this is that the fall in oil prices is not new. Energy prices have been falling down since reaching peak in early 2022. Then there was a jump in oil and gas prices due to the fight between Russia and Ukraine.
Iran did not decide to stop the Gulf of Hormuz, due to which it is only economic. This time the prices of oil did not seem to rise much. Oil traders’ concern increased slightly due to the US attack on Iran. But, that is just for a short time. During this time the prices of gold also remained stable. I have told in my article first why bullion prices will go up in 2025. There is a weak trend in the dollar. Around 60 countries in the world have seen armed conflict, terrorist attacks and turmoil.
If you look at the debt burden on governments around the world, then you will be worried. The world’s largest economy has increased to $ 36 lakh crore on the world. You will be surprised to know that the US pays an interest of $ 1 million million every year. Central banks worldwide are reducing interest rates so that the expenditure on interest on the loans of governments will be reduced.
Till now the dollar status in the world has been reserved for reserve currency. This currency has also been used for payment in global commodity markets. Asset prices are reported in dollars. The weakening of the US dollar means that now less things can be purchased than before. This means that the speed with which the dollar will weaken will strengthen gold at a high speed. In such a situation, gold is expected to continue.
Vijay Bhambwani
(The author is the founder and CEO of a property trading firm.)