The world is going through a sensitive time. A serious conflict has started between Iran and Israel, and it is not just a local issue anymore. This fight between two powerful countries in the Middle East is now affecting people and markets all over the world.
Whenever a war begins, it brings fear, uncertainty, and big changes, especially in the world of money. Investors start to worry. They begin moving their money away from risky places like stocks and weaker currencies. Instead, they put it into safer things like gold and the US dollar.
The situation between Iran and Israel is a clear example of how war can change the global economy. In this blog, we will explain in simple words:
- Why gold prices are going up
- How oil and currencies are being affected
- What smart investors are doing to stay safe
Even if you are not a trader or expert, understanding these changes can help you make better financial decisions in uncertain times.
Why Gold Prices Are Going Up During the Iran–Israel War
When people are scared about what's happening in the world, like war or economic trouble, they often turn to gold. That's because gold is seen as a safe and strong investment. It doesn't lose value quickly like some other things, so people trust it during hard times.
What's Happening Right Now?
Because of the ongoing war between Iran and Israel, gold prices have gone up a lot. In June 2025, gold touched around $3,500 per ounce in global markets. In India, it crossed ₹1,00,000 for 10 grams, which is the highest price ever seen.
Why Is This Happening?
- People Are Scared: War makes investors nervous. They don't want to keep money in risky places like stock markets or weak currencies. So, they move their money into gold, which feels safer.
- No Interest Rate Cuts (Yet): Because the war has also pushed oil prices up, many countries are dealing with rising inflation. This makes central banks (like the RBI or US Fed) more careful about reducing interest rates. When interest rates stay high or unchanged, gold becomes more attractive, because it doesn't pay interest, but it holds its value.
How the War Is Affecting Currencies Around the World
Just like gold prices are rising, the currency market (also called the forex trading market) is also seeing big changes. When a war starts, it creates fear and confusion. Investors quickly start moving their money to places that feel safer, and this causes some currencies to get stronger and others to fall.
Which Currencies Are Becoming Stronger?
- US Dollar (USD): The US dollar is seen as the most trusted and stable currency in the world. During any global crisis, many people and big investors start buying dollars to keep their money safe. That's why the value of the dollar is going up during this Iran–Israel conflict.
- Swiss Franc (CHF) & Japanese Yen (JPY): These are also called safe-haven currencies. This means people trust them in times of war or global trouble. Investors feel these currencies are low risk, so they also become stronger when fear rises.
Which Currencies Are Struggling?
- Indian Rupee (INR): India imports a lot of oil. When oil becomes expensive due to war, India has to spend more dollars to buy the same amount of oil. This puts pressure on the Indian rupee. During the peak of the war tension, the rupee fell to ₹86.7 against the US dollar.
- Turkish Lira (TRY) and Iranian Rial: These currencies are already weak due to inflation and economic problems. Now with the added war pressure and rising oil prices, they are falling even more. Investors are pulling out money from these countries because they seem too risky.
