Gaza and market chaos

11 October, 2023
As at 9am, AEST.

Spot pricing for Gold $AU2895

Spot pricing for Silver $AU34.06

Spot pricing for Platinum $AU1387

The Israel-Hamas conflict in Gaza is causing waves that are being felt globally, especially in financial markets. As geopolitical tensions continue to escalate, investors will consider or adopt a cautious or risk-off approach, leading to a ripple effect in various asset classes. We’ll be keeping a close eye on Sharemarkets, Oil and Gold this week as more news unfolds.

The uncertainty and risk associated with war based conflict often creates a tendency to shift investments away from stocks, causing fluctuations and increased volatility in global markets. If the conflict persists or escalates, this jitteriness in the stock market may continue for extended periods. We have already been witnessing a crazy see-saw effect from inflation, interest rates, and Ukraine based news throughout the year. Gaza could well be the straw that is going to break the camels back.

Almost immediately on the news of Gaza earlier this week, Gold surged. Aftermarket purchases caused pricing to position well above its previous buy/sell, as we show in today’s charts. While seeing Gold and Silver enjoy a small rebound on the heartbreaking news from Gaza, it is very important to consider the heartbreaking reality that war brings. We hope resolution is brought about as humanely as possible.

Here’s today’s pricing charts.

Gold daily, with 200MDA

Silver daily, with 200MDA

US500, with 200MDA