Investors are closely watching events in Israel as a geopolitical risk to markets, with some expectation the violence could prompt a move into safe haven assets. Gunmen from the Palestinian group Hamas entered Israel in an unprecedented attack on Saturday. Western countries, led by the United States, denounced the attack and pledged support for Israel.
"This is a good example of why people need gold in their portfolios. It is a perfect hedge against international turmoil," said Peter Cardillo, chief market economist at Spartan Capital Securities, who predicted the dollar would also benefit.Markets have been reacting in recent weeks to an expectation that U.S. interest rates will stay higher for longer. Bond yields have soared while the U.S. dollar has been on a streak of gains.
"It’s most critical to see how Saudi Arabia reacts," said Jacobsen. Washington has been trying to strike a deal that would normalize ties between Israel and Saudi Arabia.
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Source: Reuters - 🏆 2. / 97 Read more »