iifl-logo

Invest wise with Expert advice

By continuing, I accept the T&C and agree to receive communication on Whatsapp

sidebar image

Ukraine War Impact on Gold: Quantum AMC

28 Feb 2022 , 10:10 AM

Financial markets will continue to remain vulnerable to geopolitical developments in the immediate future. Gold, which is a much-chased asset class in such times, is set to benefit as risk-averse investors increase exposure to it amid pullbacks in risk assets. Once the uncertainty on these front eases, gold prices can be expected to sober down.

However, in the event of this conflict getting extended or escalated, we are looking at more money printing to fund military actions, higher energy prices as supplies from major exporter Russia get hit and economic sanctions against Russia as the NATO fights back. All these will fan the fire of already high inflation, take a toll on slowing economic growth and spur market volatility and risk aversion. This environment will be supportive of gold prices but will eventually clash with the Fed’s tightening cycle, which is expected to keep gold prices in check.

While the Russia-Ukraine conflict will be in the headlines for some time now, investors must keep in mind that gold is not a tactical play. One should stick to the fundamentals and allocate 10-15% of their portfolio to this strategic asset class that has time and again played a return-enhancing and risk-reducing role in investor portfolios in times of financial, geopolitical or other crisis. Those already invested should thus stay put. New investors should avoid lumpsum investment at current levels.

The author of this article is Mr.Chirag Mehta – Senior Fund Manager – Alternative Investments, Quantum AMC

The views and opinions expressed are not of IIFL Capital Services, indiainfoline.com

Related Tags

  • Chirag Mehta
  • gold
  • Impact on Gold
  • Quantum AMC
  • Russia Ukraine War
  • War
sidebar mobile

BLOGS AND PERSONAL FINANCE

Read More
Knowledge Center
Logo

Logo IIFL Customer Care Number
(Gold/NCD/NBFC/Insurance/NPS)
1860-267-3000 / 7039-050-000

Logo IIFL Capital Services Support WhatsApp Number
+91 9892691696

Download The App Now

appapp
Loading...

Follow us on

facebooktwitterrssyoutubeinstagramlinkedintelegram

2025, IIFL Capital Services Ltd. All Rights Reserved

ATTENTION INVESTORS

RISK DISCLOSURE ON DERIVATIVES

Copyright © IIFL Capital Services Limited (Formerly known as IIFL Securities Ltd). All rights Reserved.

IIFL Capital Services Limited - Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213,IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
ARN NO : 47791 (AMFI Registered Mutual Fund Distributor)

ISO certification icon
We are ISO 27001:2013 Certified.

This Certificate Demonstrates That IIFL As An Organization Has Defined And Put In Place Best-Practice Information Security Processes.