Gold Hits $2,000 as Israel-Hamas Clash Raises Safe-Haven Allure – by Eddie Spence and Jacob Lorinc (Bloomberg News – October 27, 2023)

(Bloomberg) — Gold surged above $2,000 an ounce for the first time since May as concerns over conflict in the Middle East outweigh the impact of the recent jump in bond yields.

Spot gold rose as much as 1.2% after Israel’s military said it was “expanding ground activity” in Gaza, putting the metal on course for the biggest monthly gain since July 2020. Prices touched an all-time high of $2,075.47 in 2020.

Bullion has jumped about 9% since Hamas attacked Israel on Oct. 7, bouncing back from a seven-month low as demand for haven assets increased. The initial price move was also intensified as many investors who were betting on a further slide were caught off guard by the outbreak of war, forcing them to quickly cover their short holdings.

“We’re seeing this spike as Israel moves into Gaza, and there’s now a growing risk this might become a broader conflict,” said Bart Melek, managing director and global head of commodity strategy at TD Bank.

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