Armed men from the Palestinian Hamas movement stormed Israel in an unprecedented attack yesterday, Saturday. Western countries, led by the United States, condemned the attack and pledged to support Israel.
Analysts say that escalating geopolitical risks may prompt a buying wave of assets such as gold and the dollar, and may also boost demand for US Treasury bonds.
Peter Cardillo, chief market analyst at Spartan Capital Securities, told Reuters, “This is a good example of why people should own gold in their investment portfolios. It is an ideal hedge against international turmoil,” and he expected that the dollar would also benefit from this situation.
He continued, saying, “Every time there is international unrest, the dollar gains strength.”
In the past few weeks, markets have been reacting to expectations that US interest rates will remain high for a longer period. Bond yields rose while the US dollar made a series of gains. Meanwhile, stocks suffered sharp losses in the third quarter but stabilized last week.
“Whether or not this is a defining moment for the market depends on how long the conflict lasts and whether other parties are immersed in it,” Brian Jacobsen, chief economist at Annex Wealth Management, said of the situation in Israel, asking how much the situation would impact the price of oil despite Iran’s surge. To produce it.
Iran and its ally, the Lebanese Hezbollah group, publicly praised the Hamas attack.
“Iranian oil production is increasing, but any progress they make behind the scenes with the United States will be greatly affected by Iran’s celebration of Hamas’ actions,” Jacobsen said. “The potential loss of production is important, but it will not have a significant impact.”
“It is very important to see Saudi Arabia’s reaction,” Jacobsen added. Washington is seeking to conclude an agreement to normalize relations between Israel and Riyadh.
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