Gold Prices Up 60% Since Akshaya Tritiya 2025; How to Invest Amid Iran Conflict?

Gold has experienced a remarkable rise in value, with prices surging by 60% since Akshaya Tritiya, 2025.  

However, this year's geopolitical tensions, notably the ongoing Iran conflict, and uncertainty around interest rates, bring a complex backdrop for those considering gold investments. 

Gold's Performance and Geopolitical Tensions 

The escalation in gold's value over the past year can be attributed to a combination of factors, including geopolitical tensions and central banks increasing their gold reserves.  

The conflict involving Iran has heightened market volatility, influencing investor behaviour towards safer assets like gold. 

Despite a recent pause in its rally, the broader appeal of gold remains. Geopolitical diversification efforts and rising global debt levels continue to support its demand. 

Interest Rates and Inflation Concerns 

The uncertainty surrounding interest rates is another vital consideration for potential gold investors.  

The US Federal Reserve has indicated a "higher-for-longer" stance on rates, potentially impacting gold's appeal.  

If inflation remains persistent, further rate hikes could occur, affecting non-yielding assets such as gold. 

Gold's Technical Analysis 

On the Multi Commodity Exchange, gold is currently trading between ₹1,54,500 and ₹1,55,000. Buying interest appears at lower levels, but a decisive move above ₹1,55,000 is necessary to sustain upward momentum. Conversely, slipping below ₹1,54,000 may lead to corrective movements. 

Read More: Indian Households Own $5 Trillion in Gold, Surpassing Top 10 Central Banks Combined: ASSOCHAM! 

Investment Strategy and Cultural Significance 

In India, gold purchasing is not only a financial decision but holds cultural importance, especially during festivals like Akshaya Tritiya.  

Investors are often encouraged to view gold as a long-term hedge rather than a short-term investment. Accumulating gold during price dips, while maintaining a disciplined investment approach, is suggested. 

Conclusion 

While the geopolitical landscape and interest rate uncertainties remain, the fundamental support for gold continues due to central bank acquisitions and global trends. Assessing these factors carefully can guide decisions on investing in gold. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.