The sharp fluctuations in gold prices in the global market have worried investors, and they are thinking that whether Gold is safe for future investment or not.
According to international media reports, the price of gold rose by about 4 percent in a single day to above $4,550 per ounce after US President Donald Trump’s recent statement regarding negotiations with Iran.
This increase was seen when Trump indicated that Iran had made an ‘offer’ regarding energy transmission through the Strait of Hormuz, which is being considered as a breakthrough in possible peace talks.
According to reports, the talks may start from Thursday, but there has been no official response from Tehran yet. According to international media reports, after nine consecutive days of decline, traders suddenly changed their strategy and gold buying increased.
Strategist Naveen told Indian media ‘NDTV’ that this increase is not a fundamental confidence but a temporary boom caused by the impact of the news. He said that the market is moving away from war fears and towards hope for peace, which has led short-selling investors to close their positions and prices have risen.
Although the recent rally is significant, gold is still about 20% below the January 2026 high of $5,626 per ounce, which has forced investors to wonder what the real direction of gold is. According to reports, Dr. Renisha Chenani, head of Augment Research, says that in the current era, ‘liquidity’, i.e. the need for cash, is affecting the market more than geopolitical tensions.
According to him, during severe financial stress, investors also sell gold to get quick cash, which can cause prices to fall despite being a traditional safe-haven asset. Experts say that after massive purchases in the last two years, central banks are now taking a cautious approach, but they are still overall buyers of gold to reduce their dependence on the US dollar.
In Indian media reports, experts, expressing their opinion on the latest situation, say that despite the recent volatility, gold is not losing its fundamental status. In the short term, it may look like a risk asset, but in the long term it is still considered an important protection against inflation, currency weakness and global financial risks.
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