Hamas Attack Boosts Appeal Of Gold And Safe-Haven Assets

The violence in Israel is likely to prompt a shift toward safe-haven assets as investors closely monitor events in the Middle East to assess geopolitical risks to the markets, Megan Davies reported for CNN.

The increasing geopolitical risk may lead to investments in assets such as gold and the dollar and potentially boost the demand for US Treasuries.

Gunmen from the Palestinian group Hamas conducted an unprecedented attack in Israel on Saturday. Western countries, led by the United States, have denounced the attack and pledged support for Israel.

The increasing geopolitical risk may lead to investments in assets such as gold and the dollar and potentially boost the demand for US Treasuries, which have been sold off aggressively, according to analysts.

"This is a prime example of why people should include gold in their portfolios. It serves as a perfect hedge against international turmoil," said Peter Cardillo, the chief market economist at Spartan Capital Securities, who also predicted that the dollar would benefit.

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

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