The prices of gold were at a level which was close to being a high of seven years on this Monday as the tensions escalated between Iran and United States and made the safe haven very attractive and in demand while palladium saw a rise of over $2000 level to reach a new peak.
Analysts have said that it is more of the anticipation regarding what might occur between Iran and United States as this is now being reflected in the markets. The uncertainty is impacting the markets even more as the investors are not sure. They also feel that if this issue is something that remains in the arena of politics and accusations are traded back and forth and threats are made then the impact on gold may not be one that lasts.
The bullion is seen often as an investment that is made as an alternative when there are times of financial and political uncertainty. The prices of gold have seen a gain of 3% after a top military commander of Iran had been killed in an airstrike on Friday which led to the widespread fears that a wider conflict of Middle East is imminent and that had prompted the investors to invest in safe havens over the risky assets.
The markets of equity had given up on the gains in the New Year amidst the tensions of Middle East intensifying will ye which is another safe haven saw a surge to a high of three months against dollar.
The president of United States had promised a major retaliation in the event of Iran hitting back and had also threatened the sanctions against the Middle East country.