Explained: Why traders aren’t holding onto gold since Middle East war despite safe haven appeal
Analysis of this story by et_markets · 13 Mar 2026, 9:49 AM IST (about 2 months ago)
AI Analysis
The global commodity cycle, particularly for precious metals, is currently influenced by a strong US dollar and risk-off sentiment, overriding traditional safe-haven demand. This impacts Indian companies involved in gold trading, jewelry, and gold-backed financing.
Trading Insight
Maintain a bearish bias on gold and related Indian equities in the near term, with strict stop-losses, as the short-term price action defies geopolitical risks.
Quick check: TATASTEEL bearish bias (-0.6% 1d), HINDALCO neutral (+1.1% 1d).
Key Evidence
- •Gold prices have fallen despite the Middle East war and rising geopolitical tensions.
- •The trend is attributed to broad risk-off sentiment, a strong US dollar, and profit-booking.
- •Experts view this as a short-term adjustment, with long-term fundamentals still supporting precious metals.
- •Risk flag: Sudden escalation of geopolitical tensions could quickly reverse gold's trend.
- •Risk flag: Weakening of the US dollar could make gold more attractive.
Sources and updates
Original source: et_markets
Published: 13 Mar 2026, 9:49 AM IST
Last updated on Anadi News: 13 Mar 2026, 10:02 AM IST
AI-powered analysis by
Anadi Algo News