"Attack on Israel likely to boost appeal of gold, safe-haven assets"

" Attack on Israel likely to boost appeal of gold, safe-haven assets \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nThe violence in Israel will likely prompt a move into safe-haven assets as investors closely watch events in the Middle East to gauge\u00a0geopolitical risk to markets.\r\n\r\nGunmen from the Palestinian group Hamas entered Israel in an unprecedented attack on Saturday. Western countries, led by the United States, denounced the attack and pledged support for Israel.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nRising geopolitical risk could see buying in assets like gold\u00a0and the dollar and potentially boost demand for US Treasuries, which have\u00a0been sold off aggressively, analysts said.\r\n\r\n\u201cThis is a good example of why people need gold in their portfolios. It is a perfect hedge against international turmoil,\u201d said Peter Cardillo, chief market economist at Spartan Capital Securities, who predicted the dollar would also benefit.\r\n\r\n\u201cAnytime there is international turmoil, the dollar strengthens,\u201d said Cardillo.\r\n\r\nMarkets have been reacting in recent weeks to an expectation that US interest rates will stay higher for longer.\u00a0Bond yields have soared\u00a0while the U.S. dollar has been\u00a0on a streak of gains. Stocks meanwhile had\u00a0sharp losses for the third quarter\u00a0but stabilized in the last week.\r\n\r\n\u201cWhether this is a massive market moment or not depends on how long it lasts and whether others are sucked into the conflict,\u201d said Brian Jacobsen, chief economist at Annex Wealth Management, of the situation in Israel. Jacobsen questioned how much impact it would have on the oil price despite Iran having been\u00a0boosting output.\r\n\r\nThe Hamas attack\u00a0was openly praised by Iran and by Hezbollah, Iran\u2019s Lebanese allies.\r\n\r\n\u201cIranian oil production has been increasing, but any progress they\u2019ve been making behind the scenes with the US will be dramatically undermined by Iran\u2019s celebrating Hamas\u2019s actions,\u201d said Jacobsen, adding that \u201cthe possible output loss matters, but it won\u2019t be earth-shattering.\u201d\r\n\r\n\u201cIt\u2019s most critical to see how Saudi Arabia reacts,\u201d said Jacobsen. Washington has been trying to strike a deal that would\u00a0normalise ties between Israel and Saudi Arabia.\r\n\r\nDavid Kotok, chair and chief investment officer at Cumberland Advisors in Sarasota, Florida, said that the situation was concerning as the US is weakened by dysfunction in Washington. Republicans are looking for a successor to ousted Speaker Kevin McCarthy of the House of Representatives,\u00a0and a budget showdown looms.\r\n\r\n\u201cI am very worried about more explosive situations that require U.S. determination and US defense capability which is being injured,\u201d by the situation in Washington, Kotok said.\r\n\r\n \r\n \r\n \r\n "

"Attack on Israel likely to boost appeal of gold, safe-haven assets"

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