OMNI Features｜Oil Spikes, Gold Hit Fresh Record After Israel Attacks in Qatar

Gold surged to a record high on Tuesday (9th) as investors rushed to safe-haven assets following Israeli military strikes targeting Hamas leadership in Qatar, a move that signaled heightened geopolitical risk. Oil also advanced, with Brent crude rising around $1 to $67 a barrel, while the Japanese yen held earlier gains.

Market strategists noted that while an escalation remains possible, investors are adopting a cautious stance until more details emerge. Jane Foley, Managing Director and Head of FX Strategy at Rabobank, said markets are struggling to assess this new threat against the backdrop of existing geopolitical risks.

Michael Brown, Senior Research Strategist at Pepperstone, remarked that the immediate spike in crude and gold prices was expected, though he doubted the rally would last. He pointed to U.S. backing for the strikes and Qatar’s restrained response as signs that broader escalation may be limited. He added that oil gains driven by geopolitics have tended to fade quickly in recent months, particularly in an oversupplied market.

Carlo Franchini, Head of Institutional Accounts at Banca Ifigest Bank, warned that targeting mediating countries was ill-timed and signaled worsening conditions. He emphasized that while equities showed little reaction, gold’s surge to all-time highs reflected investor unease over potential instability.

Reference: Reuters