Attack on Israel could boost appeal of gold and safe haven assets

Attack on Israel could boost appeal of gold and safe haven assets

Investors are closely monitoring events in Israel as a potential geopolitical risk to markets. There is a belief that the violence could lead to a shift towards safe haven assets.

On Saturday, gunmen from the Palestinian group Hamas launched an unprecedented attack on Israel. The attack was condemned by Western countries, including the United States, who pledged their support for Israel.

Analysts suggest that rising geopolitical risk could result in increased buying of assets like gold and the dollar. This could also potentially boost demand for U.S. Treasuries, which have experienced significant selling pressure. Peter Cardillo, chief market economist at Spartan Capital Securities, emphasized the importance of gold as a hedge against international turmoil and predicted that the dollar would also benefit from the situation.

Cardillo further stated that the dollar tends to strengthen during times of international turmoil.

In recent weeks, markets have been reacting to expectations of higher U.S. interest rates. Bond yields have risen sharply, and the U.S. dollar has been on a winning streak. Stocks, on the other hand, experienced significant losses in the third quarter but have stabilized in the past week.

Brian Jacobsen, chief economist at Annex Wealth Management, commented on the situation in Israel, stating that the impact on the markets would depend on the duration of the conflict and whether other countries become involved. He also questioned the potential impact on oil prices despite Iran’s increased output.

The Hamas attack received praise from Iran and its Lebanese allies, Hezbollah. Jacobsen noted that while Iranian oil production has been increasing, their celebration of Hamas’s actions could undermine any progress made in behind-the-scenes negotiations with the U.S. He also mentioned that the possible loss of output would matter but would not be significant.

Jacobsen highlighted the importance of Saudi Arabia’s reaction to the situation. The U.S. has been working towards normalizing ties between Israel and Saudi Arabia.

David Kotok, chair and chief investment officer at Cumberland Advisors, expressed concern about the situation in the U.S., particularly the dysfunction in Washington. With Republicans searching for a successor to ousted Speaker Kevin McCarthy and a budget showdown looming, Kotok worries about the impact on U.S. determination and defense capability.

Overall, the situation in Israel is being closely watched by investors due to its potential impact on the markets. The violence has raised geopolitical risks, which could lead to a shift towards safe haven assets.

About News Team

Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

Have a tip we should know?

Most Read

  1. News
    Pandora Papers Financial Leak Shows Us the Secrets of the World’s Rich and Powerful
    2 years ago
  2. Health
    US Supreme Court Rejects J & J TALC Cancer Case Appeal
    3 years ago
  3. Lifestyle
    9 Habits that Drain your Daily Focus and How to Avoid Them
    3 years ago
    Women’s Demand for Shapewear – the big Trends
    3 years ago
    Valentino Launches its Cosmetics Line
    3 years ago
  6. Health
    US Promises to Share 60 million Doses of AstraZeneca Vaccines
    3 years ago
  7. Health
    UK Offers Aid Amid Surging COVID-19 Cases in India
    3 years ago
  8. Sports
    Thousands of fans welcome Charlton funeral cortege at Old Trafford
    4 months ago
  9. News
    Brit left fighting for life after train derails in Argentinia
    4 months ago
    Dubai faces down airline rivals with $50 bln jet orders
    4 months ago
  11. Sunak
    UK’s Sunak brings back Cameron, sacks Braverman
    4 months ago
  12. Sports
    Man United’s Hojlund, Eriksen withdrawn from Denmark team duty
    4 months ago
  13. Health
    Autumn Sneezing Syndrome is on the rise… here’s what you can do
    4 months ago
  14. Canada
    Canada beat Italy to win Billie Jean King Cup for first time
    4 months ago

Follow @rushhourdaily: