2023-10-14 10:27:00
Books – Islam Saeed Saturday, October 14, 2023 01:27 PM
Gold recorded its highest weekly rise since last March with the increasing intensity of the conflict in the Middle East, which prompted investors to buy gold as a safe haven in the markets in anticipation of any developments that may occur over the weekend.
and elevation gold prices The spot price increased by 5.5% last week, recording gains of $100, and gold closed at the level of $1932 per ounce, which is the highest level in 3 weeks. This comes following gold recorded its lowest levels since last March at 1810 during the previous week. On the other hand, gold in Egypt rose by 170%. pounds once morest the backdrop of global movements
Gold Billion analysis monitored that gold rose by 3.4% during yesterday’s trading to gain $64 per ounce, which is the largest one-day rise since last March 17, as events continue to escalate between the Hamas movement and Israel, which has greatly increased the demand for safe havens in the markets, whether gold or otherwise. It is an asset that investors rely on in times of crisis.
Increasing geopolitical volatility prompts investors to maintain some insurance and protection during the weekend, which prompted them to significantly increase demand for gold in anticipation of any events that may occur during the weekend. The matter is similar to what happened in 2022 when Russia invaded Ukraine.
Looking at the US dollar, we find that it rose last week by 0.5% according to the dollar index, which measures its performance once morest a basket of 6 major currencies, as the dollar continued its rise on Friday by 0.2% following a rise of 0.9% last Thursday, which followed a series of declines that lasted 6 days. Consecutive sessions.
The rise of both the dollar and gold at the same time, despite the inverse relationship between them, indicates that investors are heading towards safe havens in the financial markets in all their forms, and it is known that gold and the dollar are the largest safe haven assets in the markets.
At the present time, geopolitical uncertainty has become the decisive factor influencing market movements. The markets have already priced in the expected Federal Reserve policies, so the focus has shifted to geopolitical uncertainty, which is beneficial for gold. Expectations are now increasing that we will witness more instability until 2024 in particular. As we approach the US elections, gold would therefore look like a suitable long-term investment at the moment.
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