The impact of the crisis in the Middle East on gold

The attack on Israel over the weekend has resulted in great tension across the Middle East region. According to reports, Iran fired more than 300 drones and missiles towards Israel in response to Israel’s attack on its consulate in Damascus. All these political developments have caused fluctuations in the gold rate.


Gold as a Safe Haven:

Gold acts as a hedge for the masses during times of geopolitical uncertainty. Due to this, we have seen gold prices skyrocket in 2024. In Australia, 1 oz of gold has increased from AUD 2875.65 per oz to AUD 3683.34 per oz as of April 18th, 2024. 


Impact on Gold Prices:

Political analysts are expecting a retaliatory attack by Israel, which is causing the price of gold to surge. "What's particularly noteworthy about gold is that even as the U.S. dollar index and Treasury yields rise, gold continues to rally strongly. This suggests significant demand for gold as a safe-haven asset," said Jim Wyckoff, senior analyst at Kitco Metals. 

Meanwhile, Goldman Sachs has changed their gold price forecast from USD 2300 per oz to USD 2700 per oz by year-end. The important thing to note here is that the US dollar rates as well as the US Treasury yield are also witnessing a continuously upward trend, yet gold prices are finishing higher.

Moreover, gold price predictions are of great interest to investors, economists, and policymakers. According to commodity markets experts, this is because gold and silver are considered safe investments by the public. According to some major analysis, economic, geopolitical and market factors influenced gold an oz price Another immediate reason behind increasing gold prices is the US Fed rate cut speculations as well as aggressive gold buying by the Chinese central bank. These reasons aren’t central, but they are still acting as contributing factors in driving the prices up.


Expert Insights and Market Outlook:

Chris Gaffney, who serves as president of world markets at EverBank, remains optimistic about the gold price trend despite its significant upward movement. He believes that although certain data points would typically have a negative impact, gold has managed to resist them. Gaffney expressed that while a correction in the bull market would be beneficial, he anticipates the overall trend to remain positive.


Investment Recommendation:

In case you are wondering where you should invest your thousand dollars right now, gold is a lucrative option. As mentioned in the article, it will continue to rise until the end of the year, giving a decent rate of return. Moreover, it is a safe investment to make as well. Except that gold price predictions is the most important part before investing in the gold. Investors, Economists and policymakers have great interest in the gold price forecast. Investors must check previous market predictions (gold forecast or gold investment forecast) while investing in gold. It helps them to gain profit in the gold market and with this strategic move they can stay up to date with the gold price analysis and forecast. Moreover, gold market prediction or gold rate prediction graph fluctuate on the basis of economical, political and other factors because these factors highly affect the gold price and gold market.                      


Contact Information for Buying Gold:

If you are interested in buying gold at market-competitive prices, Bullion Hub is here to help you. You can contact us on or visit us at 227 Collins Street, and we will be more than happy to assist you.