On October 18, the spot gold price exceeded the $2,700/ounce mark for the first time due to rising concerns over the conflict in the Middle East, prompting investors to seek safe-haven assets.

Global Conflict Tension Drives Gold Prices Higher

💰 Gold Prices Rise

Gold prices increased by about 0.3% after Israel announced the elimination of Hamas leader Yahya Sinwar. This event boosted gold demand, helping the precious metal surpass other negative macroeconomic factors. At the same time, mixed economic data from the U.S. has lowered investor expectations regarding the Fed’s potential monetary policy easing this year, making gold a more attractive option.

🔥 Israel Eliminates Sinwar

Israeli Prime Minister Benjamin Netanyahu confirmed Sinwar’s death, who is considered the mastermind behind the October 7, 2023, attack. While this is seen as a significant achievement, Netanyahu stated that the war will continue until all Israeli hostages are released. U.S. President Joe Biden and French President Emmanuel Macron view this as an opportunity to push for ceasefire negotiations; however, the situation remains tense with concerns over the fate of hostages.

=> Conclusion

The event of gold prices surpassing $2,700/ounce, along with the death of Hamas leader Sinwar, has created significant volatility in the financial and geopolitical markets. Demand for safe-haven assets like gold is expected to increase amid ongoing conflict. Investors need to closely monitor these developments to adjust their investment strategies accordingly.