Gold prices have surged, surpassing $2,000 per ounce for the first time since May due to heightened apprehensions of violence in the Middle East.

Spot gold prices increased by up to 1.2% following Israel’s military announcement about Gaza expansion, reaching their largest monthly gain since July 2020.

Bullion prices gained almost 9% following the Hamas attack on Israel on October 7th, driven by increased demand for safe-haven assets and surprise from investors.

The increase in hostilities and geopolitical concerns may lead to increased oil prices and short-covering, causing gold prices to diverge from conventional trading patterns.

The relationship between gold prices and real interest rates has deteriorated, with investors seeking refuge in gold.

The Federal Reserve’s tight monetary policy statements contributed to a decline in bullion prices.

The potential for the conflict to extend beyond its current boundaries and impact the global oil supply has caused financial market unease.