Search
EN Down
Language
Hi, user_no_name
Live Chat

 

Gold up on safe haven appeal as Israel retaliates after surprise Hamas attacks 

The price of gold surged by 1% to reach $1,860 per ounce on Monday, extending gains from the previous session amid the ongoing war between Israel and the Palestinian militant group Hamas, which entered its third day and heightened geopolitical tensions in the Middle East.  

Over the weekend, Hamas launched a surprise attack on Israel, triggering a series of retaliatory actions from the latter and resulting in a combined death toll exceeding 1,000 on both sides. On Sunday, Israel declared a formal state of war for the first time since 1973, setting the stage for a major military operation in the Gaza Strip. 

Investors were also concerned about the potential for a broader conflict, with suspicions of Iranian involvement in the attacks. According to both Hamas and Hezbollah, Iran helped plan the attack, according to a report in The Wall Street Journal. However, according to a Monday report from the Times of Israel, “the IDF also said there was no evidence yet of Iran’s role.” 

Despite a stronger-than-expected U.S. jobs report on Friday, gold managed to mount a solid comeback and rise by 0.7% as the dollar retreated on the day after showing short-lived gains.  

 

Calculate your Commodities profit

Calculate your hypothetical required margin for a Commodities position, if you had opened it now.

Category

Metals Search
Metals
Energy
Softs

Instrument

Search
Clear input

Entry price

Exit price

Open date

Close date

Account Type

Direction

Quantity

Amount must be equal or higher than

Amount should be less than

Amount should be a multiple of the minimum lots increment

USD Down

Spread

-

Conversion Fee

$-

Overnight Swaps

$-

Commission

$-

P/L

$-
"displayed in symbol currency"

P/L

$-
"displayed in account currency"

Current conversion price:

-
Start Trading

Past performance is not a reliable indicator of future results.

Gold price forecast: Boost may be temporary as markets sensitive to news of wider conflict 

As the metal is viewed as a safe-haven asset by some investors during periods of geopolitical turmoil, the short-term gold price dynamics will likely be positive, as noted by Norbert Ruecker, head economics and next generation research at Julius Baer, told the Wall Street Journal: 

 

“Oil and gold prices are gaining on the uncertainty; safe-haven government bonds could see a pause in rate increases amidst the return in safe-haven flow.”

 

According to Ruecker, the key question is how long these haven flows will last with the conflict escalating: 
 
 

“At least from a commodity perspective, geopolitics tends to be a noise element rather than a lasting and impactful fundamental force.”

 

Peter Schaffrik, chief European macro strategist at RBC Capital Markets, issued a similar gold price overview, saying that for a broader or lasting impact on markets — including commodities such as gold — the conflict would likely need to escalate beyond Israel's borders: 

 

"The uncertainty about what [the war] means for the region means that oil is going up, and there is a bit of ‘risk off’ and hence bond markets are performing and equity markets are down a little bit. You can’t help but feel sympathy for the people on the ground, but the market, if it doesn’t impact the wider economy, can easily shrug things off."

 

A recent survey by Kitco indicated that Wall Street analysts and retail investors were evenly split on gold’s prospects — although those projections and opinions will now likely be adjusted given the Hamas attack on October 7. 

The gold price forecast shared by economic data aggregator TradingEconomics saw the commodity trading at a potential average of $1,853.05 by the end of this quarter. The platform’s 12-month gold projection estimated it to trade at $1,916.63 by early October 2024, indicating a potentially bullish outlook. 

When considering gold and other commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss. Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. 

Latest news

French election worries drop CAC 40, widen bond spreads

Friday, 14 June 2024

Indices

Election fears hit CAC 40, French-German bond spreads widen

Tesla shares up after shareholders approve CEO Elon Musk's massive pay package

Friday, 14 June 2024

Indices

Tesla shares higher as shareholders back $56bn Musk pay deal

Japanese yen drops as BoJ stands pat on rates, "stalls" until next meeting

Friday, 14 June 2024

Indices

Stocks rise, Japanese yen falls after BoJ "stalling tactic"

RBA, SNB, Bank of England rate decisions due next week

Thursday, 13 June 2024

Indices

Week ahead: RBA, Bank of England in stick or twist mode

Live Chat