In a significant escalation over the weekend, Iran witnessed a surge in anti-government protests, even as the United States and Tehran exchanged sharp warnings, raising fears of a broader military confrontation. The developments have sent shockwaves through global financial circles, with Indian market experts predicting immediate impacts on domestic stocks and precious metal prices.
Protests and Warnings Amid Internet Blackout
On Saturday, streets in Iran's capital, Tehran, echoed with anti-government slogans as protests intensified across the nation. This occurred despite a government-imposed internet blackout and a severe crackdown by the administration led by Supreme Leader Ayatollah Ali Khamenei. In a direct message, Iran cautioned the United States against any military involvement aimed at supporting the protestors. This warning came shortly after US President Donald Trump stated that Washington was "ready to help."
Military Buildup and Contingency Plans
The diplomatic standoff took a more serious turn by Sunday, with reports indicating that the US is actively preparing contingency plans for potential military action. This follows President Trump's public warnings about possible intervention. A former US Army colonel and military analyst pointed to signs of a significant military buildup in the Middle East, underscoring the rapidly deteriorating situation.
Indian Market Analysts Predict Volatility and Safe-Haven Rally
The geopolitical storm is expected to have direct consequences for Indian investors and markets. According to Avinash Gorakshkar, a SEBI-registered fundamental analyst, the military escalation will negatively affect market sentiment.
"This will fuel uncertainty and hence demand for gold and silver as safe-haven assets will spike. So, I am expecting flat to negative opening for the Indian stock market, whereas gold and silver rates may open with an upside momentum," Gorakshkar explained.
Echoing this view, Anuj Gupta, a SEBI-registered commodity expert, stated that the news of military deployment is likely to accelerate a rally in precious metals. He provided specific price projections:
- Gold could see a gap-up opening, potentially touching $4550 per ounce internationally. On the MCX, gold rates may reach ₹1,42,000 per 10 grams.
- Silver prices may also open higher, targeting $82 to $85 per ounce. In the domestic MCX, silver could hit between ₹2,56,000 and ₹2,60,000 per kilogram.
The consensus among experts is clear: the unfolding crisis between the US and Iran is poised to create immediate turbulence in the Indian stock market while driving investors towards the traditional safety of gold and silver.
Disclaimer: This article is for informational purposes only. The views and recommendations are those of individual analysts. Investors are strongly advised to consult certified experts before making any investment decisions.
