Gold becomes $35 trillion superpower amid Iran war; five times combined GDP of India, UK

New Delhi: The Iran war has increased uncertainty in markets worldwide. Meanwhile, gold prices are experiencing a sharp surge amid this uncertainty. Consequently, investors are increasingly turning to gold in search of safe havens. Consequently, the global gold market value has reached approximately $30 to $35 trillion. This value is believed to be larger than the combined GDP of India and the United Kingdom (UK).

According to analysts, the US and Israeli attacks and Iran's retaliatory military action have caused significant instability in global markets. Consequently, investors have shifted funds from riskier investments to gold. Consequently, the price of gold in the international market has risen above $5,400 per ounce and is poised to reach a record high of $5,600 per ounce.

Why is gold being called a 'financial superpower'?

According to an NDTV report, this sharp rise in gold prices has pushed the estimated value of the world's total gold reserves to $30-35 trillion. By comparison, India's total GDP currently hovers around $3.5 trillion and is expected to soon surpass $5 trillion. On the other hand, the United Kingdom's economy is approximately $3 trillion. Consequently, the total value of gold has become several times larger than the combined GDP of both countries. This is why some analysts are calling it a "gold superpower."

Is gold a safe haven for investors?

When war, inflation, and economic uncertainty increase globally, investors consider gold to be the safest and most reliable asset. Therefore, during major geopolitical tensions, both the demand and price of gold increase. According to experts, there are several reasons behind the rise in gold prices in recent months. These include global wars and geopolitical tensions, massive gold purchases by central banks, increased inflation following the pandemic, and growing uncertainty about the dollar and other currencies.

What's Next?

However, experts are divided on this issue. Some believe that if the Iran conflict subsides, the global economy strengthens, or interest rates rise, gold prices could fall. However, many analysts believe that due to rising geopolitical tensions and declining trust in fiat currencies, gold may remain a strong long-term investment. However, amid the Iran war and global instability, gold is once again emerging as the world's largest safe-haven asset, with its total value exceeding that of many major economies.