Economic analysts expected gold prices to rise. Analysts said that escalating geopolitical risks may prompt a buying wave of assets such as gold and the dollar, and may also boost demand for US Treasury bonds.

Chief market analyst at Spartan Capital Securities, Peter Cardillo said, “This is a good example of why people should own gold in their investment portfolios. It is an ideal hedge against international turmoil.” He expected that the dollar would also benefit from this situation.

He continued, saying, “Every time there is international unrest, the dollar gains strength.” In the past few weeks, markets have been reacting to expectations that US interest rates will remain high for a longer period. Bond yields rose while the US dollar made a series of gains. Meanwhile, stocks suffered sharp losses in the third quarter but stabilized last week.

Source: Qatar News Agency