Gold & US Dollar Rise as Investors Seek Safe Havens During Israel Invasion

These assets tend to increase in value when there is international uncertainty and turmoil

(October 9,2023- Patrick Cooley)

The value of so-called safe haven assets like gold and the U.S. dollar ticked up following the weekend attack on Israel.

The per-ounce price of gold rose as high as $1,859 Monday from $1,833 Friday, according to JM Bullion. The value of the dollar edged up as much as a half a percentage point.

Investors look for safe places to park their money during periods of international uncertainty, and on Saturday Hamas launched a large-scale invasion of Israel from the Gaza strip.

"Whether this is a massive market moment or not depends on how long it lasts and whether others are sucked into the conflict," Brian Jacobsen, chief economist at Annex Wealth Management, told Reuters.

"This is a good example of why people need gold in their portfolios. It is a perfect hedge against international turmoil," Peter Cardillo, chief market economist at Spartan Capital Securities, told Reuters.

"Anytime there is international turmoil, the dollar strengthens," Cardillo added.

The duration of any decline will depend on “whether the conflict remains contained or spreads to involve other regions, particularly Saudi Arabia,” CNN reported, citing a report written by analysts at ANZ.