Middle East Turmoil Impact on Gold

Banner of Gold amid Turmoil

by Tanushree Jaiswal Last Updated: Oct 11, 2023 - 06:12 pm 417 Views
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What's going on in the Middle East?

Fears of a bigger crisis have been aroused by an attack by a Hamas faction backed by Iran, which has left the Middle East in upheaval. There have been rumours regarding this conflict's possible effects on the burgeoning Iranian economy. As a result, although oil and Treasuries increased, U.S. stock futures declined in Asia on Monday. Due to this circumstance, investors are looking for safe-haven assets like gold and the Japanese yen in the financial markets.

Impact on Global Market

The global market has been rocked by the Middle East conflict. Global financial markets are volatile and unclear due to the increase in oil prices and the possibility of supply interruptions. The U.S. dollar has declined and the euro has lost value as a result of investors' flight to safe havens like gold and Japanese yen.

Overview of the Impact on the Gold

The surprise strike on Israel by Hamas caused gold to rise by 1.23% and close at 57,572. Due to traders' and investors' unease, there is a demand for gold as a safe haven. It's interesting to note that this surge continued in spite of the US employment data, which was better than anticipated and often signals an increase in interest rates. 
Since gold doesn't provide money with higher interest rates, it usually loses attractiveness; yet, for the time being, the global unrest appears to offset this worry.

Furthermore, when reduced prices drew purchasers, the demand for actual gold strengthened in a few Asian countries. As jewellers prepared for the festive season, premiums in India hit a 17-month high, enabling them to charge up to $5 per ounce over official domestic pricing. 

Due to restricted gold import restrictions, gold premiums in China decreased in September after hitting all-time highs. China's gold holdings decreased in value overall in September despite a minor gain.

Technical Perspective

Technically speaking, short covering is evident in the gold market, as open interest decreased by -4.66% to close at 15,215, despite a rise in prices of 701 rupees. With a possible downside of 56,790, key support is located around 57,185. At 57,790, there is now resistance; a break through might send prices testing 58,000.

Top Gold Stocks to Keep Eyes on

 S.No. Top Gold Company Stocks in India 2023
1 Titan Company
2 Manappuram Finance Ltd.
3 Rajesh Exports
4 Kalyan Jewellers
5 Vaibhav Global

1. Titan Company

Titan firm Limited is an Indian firm that specializes in the production and retail of jewelry, watches, eyeglasses, and several other accessories and goods.

The Watches and Wearables, Jewellery, Eyewear, and Others sectors comprise the Company. One of the most well-known and prominent gold stocks in India is The Titan Company.

2. Manappuram Finance Limited

It’s a non-banking financial corporation (NBFC) situated in India. In particular, the organization caters to the credit needs of individuals from lower socioeconomic strata in India's rural and semi-urban areas.

The Company provides a selection of financial services including retail credit products.

3. Exports Rajesh

The company Rajesh Exports Limited deals in gold and gold-related items. The company produces a range of gold goods in addition to refining gold. Handmade, cast, machine-made, stamped, stud-studded, tube, and electro-formed jewelry are among the items it manufactures.

Under the brand name SHUBH Jewellers, the company operates a chain of branded retail jewelry stores where it offers gold and diamond jewelry.

4. Kalyan Jewellers

A well-known gold firm in India, Kalyan Jewellers India Pvt Ltd is a retailer of jewelry. This is the nation's best gold stock.

The company sells jewelry made of gold, diamonds, platinum, and silver. Mudhra, Anokhi, Rang, Vedha, Tejasvi, Apoorva, Ziah, Laya, and Glo are among the brands owned by the company.

My Kalyan offers a range of services, such as advance jewellery purchase plans, gold insurance, wedding planning, gift voucher sales, advance scheduling of purchases to guard against price hikes, and gold purchasing education and suggestions.

5. Global Vaibhav

A vertically integrated electronic retailer of fashion jewellery, home goods, cosmetics, lifestyle, and necessities, Vaibhav Global Limited is situated in India. The business provides services to clients in the UK and the US.


You may now think about buying gold-related stocks in India after learning about the several kinds of gold stocks you can buy. Despite the fact that gold stock investment is normally secure, you must do extensive study before you begin.

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About the Author

Tanushree is a seasoned professional with 6 years of experience in the Fintech and Edtech industry.


Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.
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