Gold price prediction: Gold rate to hit record highs or there will be volatile phase? Check Bullion experts' comments

Gold price on Monday could hit new highs amidst the US-Iran war. The U.S. and Israeli strikes on Iran have intensified uncertainty across global markets, with investors closely watching potential safe-haven flows into bullion. Analysts said the extent of the impact on gold prices will depend on how long the conflict persists, as global investors recalibrate risk exposure amid fears of a prolonged instability in the Middle East. Besides, they added that the geopolitical situation, and US retail sales and non-farm payroll and employment data toward the end of the week will be factors.


There will be extra haven demand for gold which could ​see prices rise to around $5,500 again, and possibly a new record high above January's peak of around $5,600, said. Fawad Razaqzada, ​market analyst at City Index and Forex.com



However, gold's gains beyond that level could be capped by a potential rebound in the U.S. dollar, especially if crude oil stays sharply higher, he claimed.


Gold is likely to be in higher demand than usual when markets open on Monday. Given the risks regarding how long the conflict ⁠may last, ‌which other nations could be dragged in, and inflation fears, gold is expected to assume its mantle as the safe haven asset of choice, Hugo pascal, a precious metals trader at Inproved, said.


Stock markets and other risk assets will probably be sold off and investors will be looking for the ⁠best place to park their funds, and gold will likely be atop that list, Pascal said.


Gold and silver prices are set to remain highly volatile with gap-up on the opening session on Monday as the Middle East conflict involving renewed US and Israeli military action against Iran -- continues to dominate global risk sentiment, Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities, said.


On Monday, the price reaction will be positive initially, though there could be some retracement later in the session depending on how events unfold. Our overall ​view has not changed, ​we remain positive on gold ... Geopolitics has ⁠been very different this year, with tensions more intense, and after this attack there could also be macro implications, especially if oil prices rise sharply, ANZ Analyst Soni Kumari said.