Gold moves sideways due to tensions in the Middle East

Instability in the regions can cause disruption to the global supply chain as happened after the outbreak of the Russia-Ukraine conflict. Inflation may again increase uncontrollably like in Europe and the world after Russia and Ukraine fell into a terrible crisis.

The Israel-Hamas peace summit on Gaza organized by Egypt ended without providing a solution to resolve the current tense situation. The cause is said to stem from differences in viewpoints of relevant parties.

Prices of many high-risk assets such as stocks may decline. Meanwhile, highly safe assets such as the USD and gold may increase in price sharply.

Gold prices are still on an upward trend as most observers believe that the unstable situation in the Middle East is likely to break out very quickly and shake the market.