Gold: best hedge against geopolitical risks

10.12.23 - Gold: best hedge against geopolitical risks

Gold last traded at $1,869 an ounce. Silver at $21.80 an ounce.

Gold becoming best hedge against geopolitical risks, experts contend -China Daily

Investors in gold should increase their holdings of the precious metal to beat multiple uncertainties, experts said on Monday, even as prices have turned volatile recently due to escalated geopolitical tensions and a muted global economic outlook.

Gold prices rallied on Monday as demand for safe-haven assets jumped worldwide after a surprise attack on Israel by militant group Hamas on Saturday.

Prices of COMEX gold futures in New York opened nearly 1 percent higher on Monday at $1,863.50 per ounce and stayed at about $1,865 in the following trading hours.

Spot gold prices in London also jumped over 1.3 percent to $1,856.95 per ounce shortly after trading began on Monday.

The "renewed geopolitical conflict in the Middle East rattled investors' nerves and boosted safe havens such as gold", Dhwani Mehta, a senior analyst and manager of the Asian session at financial information provider FXStreet, said in an article on Monday.

Going forward, all eyes will be on the Middle East conflict, which could impact the US dollar and gold prices. But further upside in gold rates could be capped should there be increased demand for the greenback as a safe-haven asset, she wrote.