HE Gold increased by 8.35 percent in the last four weeks after the start of the Gaza warvery close to $2,000 per ounce. The precious metal settled at $1,965 this Tuesday, losing 1.25%.
This Tuesday marks one month since Hamas bombarded Israel with 3,000 missiles, killing 260 Israelis at the Reim music festival and kidnapping 199 people to the Gaza Strip. This attack started the conflict between Hamas and Israel that has been going on ever since.
“Gold is clearly favored due to geopolitical tension. The war between Israel and Gaza is what many consider Look for safe haven assets and gold is one of the main candidates”Head of Commodity and Macroeconomic Research at WisdomTree, Nitesh Shah.
Before the war, gold was affected by the appreciation of the US dollar and bond sales in recent months, which caused a decrease in demand for investment funds. However, the demand of central banks and Especially retail investors in China and TurkeyIt is very powerful.
“While demand in these pockets appears to be a reaction to local concerns, we believe that institutional investors globally are likely to become increasingly concerned about global risks and look for more hedging instruments,” adds Shah.
Consensus sees further increases
The American investment firm argues that the consensus scenario among analysts is that gold will “reach its highest level” $2,090 in the third quarter of 2024“In real terms, it does not reach the historical maximum reached in January 1980. In fact, it would be 40% below that level, which in real terms is still 17% below the 2020 maximum.”