How do Wars Affect The Gold Rate Today?

How do Wars Affect The Gold Rate Today -

Investors are being urged to look to gold as a safe haven during times of turmoil due to the recent events. To determine if this is a wise decision, it’s important to understand how wars affect the gold rate. Gold has been a safe investment in times of uncertainty and conflict. This is because precious metals such as gold can be kept in value for centuries.

We can see that gold prices tend to rise with the onset and continuation of wars if we look back at the history of gold prices.

Below is a graph showing how gold prices rose after many wars around the world.

War and Gold Prices -

Gold prices rose 23% in 1977 after the Iranian Revolution. Due to more conflicts and upheavals, gold prices rose by 37% and 126%, respectively, in 1978 and 1979. The significant rises in gold prices were caused by the Iran-Iraq War in 1978, Soviet Union’s invasion of Afghanistan in 1978 and 1979 Iranian hostage crisis.

The boom in gold prices has also been caused by other global turmoil, such as the Gulf War of 1990 and the 9/11 attacks. Gold prices rose significantly after the 1990 invasion of Kuwait by Iraq during the Gulf War. Gold prices have risen from $215.50 to $287 per ounce after the 9/11 attacks on US soil. In early 2020, the US airstrike on Baghdad also pushed spot gold prices up to $1,547.19 an ounce.

“We are continuing to see gold and silver build on the gains that we saw towards December, and there is no question that the latest developments in the attack in Iraq have taken us to this level,” Ole Hansen, analyst at Saxo Bank.

As a result, gold prices have been on the rise since the beginning of time. The effect of the Russian-Ukrainian conflict on gold prices is not surprising. Gold prices soared to $1,830 an ounce after talk of war between Russia and Ukraine earlier this February. The gold price rose more than 2% to $1946 an ounce on February 24, when Russia attacked several Ukrainian cities.

Investors can also count on the precious metal to provide a safe haven in times of trouble. This explains why it has suffered so much from wars and turmoil. It is important to remember that gold prices tends to stabilize after the dust settles.

The 1970s saw upheavals. Many upheavals occurred in the late 1970s, such as the Iranian Revolution of 1978, the Iran–Iraq war 1979, the Soviet Union’s invasion in Afghanistan in December 1979 and the Iranian hostage crisis 1979. The graph shows that gold prices rose during this time. The gold price rose by 23% in 1977, 37% for 1978, and an amazing 126% for 1979.

Gold prices rose after the September 11th 2001 attack on the United States. The US invasion of Iraq 2003 followed this trend. The result was also a rise in gold prices. But, gold prices returned to their pre-war values after some confidence was built that the war would be successful and short.

Gold prices responded strongly to rumors that the United States might intervene in Syria in 2014. This was even in 2014. Recent warnings from US military leaders against an even larger war with ISIS have been made.

Europe’s situation seems to be spiraling out of control. Gun sales in Austria are at an all-time high. As a result of the influx of refugees to Europe, people are arming themselves to protect themselves against potential attacks. If the outlook is not changing, people may shift some of their portfolios to gold and other precious metals. This could support precious metals over the medium-term.