Gold and oil prices jump on geopolitical unrest

by | Oct 20, 2023

(Sharecast News) – Commodity prices continued to rise on Friday, as tensions escalated across the Middle East.
Gold, traditionally seen as a safe haven asset, pushed past $1,980 an ounce, with Comex gold futures adding nearly 1% at $1,980.60, the highest since May. Spot gold was also higher.

Benchmark Brent crude, meanwhile, was trading up 1.4% at $93.65 per barrel, while West Texas Intermediate was ahead 1.5% at $90.70.

Neil Wilson, chief market analyst at Finalto Trading, said: “Undoubtedly gold’s appeal as the safe haven of last resort is all that matters right now for bulls amid what’s probably the most precarious geopolitical situation since the end of the Cold War.

“First Ukraine, now Israel, the conflict is widening and going to becoming more and more protracted and complex.

“Middle East conflict fears also helped send oil to its highest in three weeks, as the war premium returned to crude.”

Michael Hewson, chief market analyst at CMC Markets, said: “Gold prices are still looking resilient and could well retest the highest earlier this year above $2,000 an ounce unless we see an easing of the geopolitical tensions currently sending convulsions through financial markets.”

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