Additionally, escalating violence between Israel and Hamas raises the possibility of a new major war in the Middle East, which is boosting oil prices and demand for safe-haven assets, including U.S. Treasuries and the dollar.
Gold is experiencing an increase of more than 1% due to the ongoing military conflict between Israeli forces and the Palestinian Islamist group Hamas, which is generating political uncertainty in the Middle East. This situation has led investors to look for safe haven assets, like gold barsas a form of protection for your investments.
On Sunday, Israel carried out bombings in the Palestinian enclave of Gaza in response to one of the most violent attacks in its historycarried out by Hamas gunmen on Saturday, resulting in the deaths of hundreds of people. In times of political and financial uncertainty, Gold becomes a widely used safe investment.
Spot gold registers an increase of 1%, reaching a value of 1,850.70 dollars per ouncethus marking its highest level in the last week. US gold futures also show an increase of 1.1%, settling at $1,865.10.
Analysts, such as Giovanni Staunovo of UBSpoint out that gold is benefiting from the increase in geopolitical tensions in the short term, as investors seek safe haven for their assets. However, high interest rates in the United States are expected to remain a challenge for gold, and a possible rise in gold prices is anticipated once the Federal Reserve shows a more dovish stance throughout 2024.
Besidesthe escalation of violence between Israel and Hamas raises the possibility of a new major war in the Middle Eastwhich is driving oil prices and demand for safe-haven assets, including US Treasuries, the dollar, the Japanese yen and, of course, gold.
In the field of precious metals, the silver spot shows an increase of 0.4%, reaching $21.68 per ounce. In addition, the platinum registers an increase of 0.9% to $884.41, while palladium remains stable at $1,158.33.
Investors are also keeping an eye on possible positive inflation data at the end of the week, as they could pave the way for a further increase in US interest rates this year, which would affect the attractiveness of gold as an investment. In additions, the publication of the minutes of the September meeting of the US central bank, scheduled for Wednesday, is awaited.
Source: Ambito
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