Gold price up due to increased geopolitical risks

Gold rose in price on Tuesday morning as the escalating conflict in Israel supported demand for safer assets, Report informs.

The price of December gold futures on the New York Comex exchange rose by $11.05 (0.59%) to $1,875.35 per troy ounce. December silver futures fell 0.02% to $21.92 an ounce.

On the morning of October 7, Israel was subjected to an unprecedented rocket attack from the Gaza Strip. In addition, Hamas fighters, after massive rocket attacks, penetrated the border areas in the south of the country.

Gold has traditionally been considered a safe-haven asset, the demand for which rises in the event of increased global uncertainty and geopolitical risks.

With oil prices rising, associated inflation and uncertainty could impact the policies of the US Federal Reserve and therefore the price of gold.