Oil and gold prices rose on Tuesday as the Israeli-Hamas war showed signs of escalation with flare-ups across the region, including Saudi Arabia.
Brent crude oil price is +0.91% at the time of writing, while WTI crude is up by 0.86%. Natural gas price is up by 1.22% in the Tuesday morning trade.
Gold flirted with $2,000 and is once again behaving like a safe haven asset during the ongoing Middle East crisis, David Morrison, Senior Market Analyst at Trade Nation, explained.
Gold had been trading at around $1,830 the day before Hamas launched an attack on Israel 7th October. Since then, gold has steadily ticked higher as investors pile into the safe haven.
According to David Morrison, “for now, investors are spurning US government debt as the ultimate go-to safe haven, as they worry about the increased supply of bonds, federal debt and the loss of the Federal Reserve as a strong buyer.”
Oil consolidation
In the context of the ongoing Israel-Hamas conflict, the WTI price has consolidated at around $83 after trading near $90 in the early days of the war.
The conflict is yet to materially disrupt the oil supply in the region and the initial bid in oil has diminished through October.
“But prices could shoot higher if there should be an escalation which threatens supply”, David Morrison warns.