Investing in Gold and Oil for Portfolio Safety Amid Tensions

As tensions in the Middle East escalate, financial analysts are advising investors to consider gold and oil as protective assets. UBS analysts, led by Tilmann Kolb, highlighted that a potential regional conflict could disrupt oil supplies, leading to rapid price increases. They emphasized that gold remains a conservative investment choice during such uncertain times. The situation has intensified following the assassination of Hamas political leader Ismail Haniyeh in Tehran, prompting Iran to threaten retaliation. Reports indicate that Iran's Supreme Leader, Ayatollah Ali Khamenei, has ordered a direct strike on Israel. This comes on the heels of a tragic incident where a rocket from Lebanon killed 12 children in the Israeli-occupied Golan Heights, which Israel attributed to Iran-backed Hezbollah. In response, Israel conducted a strike in Beirut, resulting in the death of a senior Hezbollah commander. UBS analysts expressed concern over the potential for miscalculations that could escalate the conflict, despite a general lack of interest in broadening the war among involved parties. They noted that the risk of retaliation remains high, which could further destabilize the region. In the wake of these developments, gold prices have already begun to rise, reflecting its status as a risk hedge. Analysts predict that increased demand from banks, coupled with a potential Federal Reserve interest rate cut, could further elevate gold prices in the near future.