The recent Hamas attack on Israel has created turmoil in geopolitics around the world and many sectors have been affected because of it. The attack will lead investors towards safe-haven assets like gold and U.S. Dollar.
Palestinian Group Hamas Attacked Israel where they launched more than 5,000 rockets on Israel. The attack has been condemned by many countries around the world and a few also pledged their support for Israel.
Such geopolitical tensions may urge more and more people to invest their money in safe-haven assets like gold, Dollar and US treasuries. Safe-haven assets are not likely to depreciate in case of a market downfall or economic crises and that is why having safe-haven assets like gold is important for an investor’s portfolio.
The energy market would be most affected by the attack as major oil producers like Iran and Lebanon have openly praised Palestine. It can severely damage their relationship with Western countries which in turn will have negative effects on their stocks, and it will create a ripple effect in the whole market.
On top of that, the U.S. was looking to strike a deal that would normalise the relationship between Israel and Saudi Arabia, but the attack might deteriorate even further. In recent months, Saudi Arabia has decreased their oil production, but after the U.S. urged Saudi Arabia, they started producing more oil, but now production might go down again.
These reasons are why more and more people are looking to invest in safe-haven assets like gold and other assets. Investing in gold is never a bad idea, but it is an excellent idea during geopolitical tensions.
Only time will tell how this war between these nations will turn out for stock markets and investors. Till then, it’s recommended that you put your money in safe-haven assets like gold and dollars.