2024-10-02 12:06:34
Iran attacks Israel with almost two hundred rockets. The crisis in the Middle East is sending the raw material gold to a record high.
The uncertainty surrounding the escalation of the Middle East conflict has brought gold to a new record high. The yellow metal, which is traditionally considered a safe haven in times of crisis, rose in price on Tuesday by up to 1.5 percent to $2,672.99 per troy ounce.
This surpassed the high of $2,670.20 reached on Saturday. On Tuesday evening, the price settled at $2,660, up around one percent.
In response to Israeli attacks against the radical Islamic Hezbollah in Lebanon, Iran fired numerous rockets at Israel on Tuesday evening. According to initial information, there were no victims in Israel. “If there were multiple casualties in Israel, there could be an all-out Middle East war. That’s what market participants are most concerned about at the moment,” commented Jim Wyckoff, chief analyst at Canadian trading platform Kitco Metals.
Investors also grabbed the greenback and US government bonds. These are also considered safe investments. The dollar index advanced by half a percent to 101.19 points, while the yield on ten-year US bonds fell to 3.741 from around 3.800 percent.
However, New York metals trader Tai Wong was calm: “Investors are instinctively looking for safe havens at the moment, but if no Iranian missile causes serious damage in Israel, it could end in a similar way to the attack in April, which was almost completely intercepted.”