PRECIOUS METALS | Global Tensions Impact Gold Prices Amid Middle East Conflict

On February 28, local time, a military strike by the U.S. and Israel on Iran heightened global risk aversion, according to PANews. Analysts predict a significant rise in the prices of gold and other precious metals. However, following an increase on February 28, gold prices experienced a sharp decline on March 1. Economist Pan Helin, a member of the Ministry of Industry and Information Technology's Information and Communication Economics Expert Committee, noted that the death of Iran's Supreme Leader Ayatollah Khamenei has altered short-term market expectations, suggesting a potential stabilization of the Iranian situation. If Iran can smoothly transition its leadership post-Khamenei, the capital markets might see a complete reversal in expectations, leading to a decrease in gold and oil prices and a rise in U.S. stocks, particularly industrial stocks. Nonetheless, the uncertainty of war and Khamenei's death could further destabilize the situation in Iran.