Forex Is gold still a safe haven amidst geopolitical risks?

[FXOchartist]

We know that the latest news about the Hamas vs Israel war became hot news at the end of 2023. The war that killed more than 21,000 civilians made Israel condemned by many countries. And many Israeli products were boycotted, losing billions of dollars due to the impact of the war.

And it seems that the escalation of the war has spread in the Red Sea, the Houthi group which supports Hamas has launched an attack on a cargo ship affiliated with Israel in the Red Sea. Thus increasing global geopolitical tensions.

Behind these geopolitical risk conditions, investors will of course choose assets that in their view are safe from geopolitical risk. To learn about the role of geopolitical risks in forex trading, we can read a good article on the FXOpen blog.

And talking about safe havens, besides finding safe haven currencies, you can also find safe haven assets. Gold is one of the popular safe haven assets and it has been proven that gold has always been valuable, in fact gold has been around since ancient times, and the intrinsic value of gold has never faded until now.

Is gold still able to be a safe haven in the midst of the current geopolitical turmoil? The current price of gold on Ticktrader FXOpen is 2062.68 and the price of gold in 2023 reached a high of 2135 on December 3. We never know the price of gold in the future, usually the price of gold is correlated with the USD, when the USD strengthens, the price of gold decreases, conversely when the USD weakens, the price of gold rises

 

[Holicent]

Gold has always been a safe haven asset. Despite the function in price recently due to some economic turmoil, I still say it's safe investing in this. Compared to other assets I don't see a significant fluctuation and I don't see as significant decrease soon whatsoever. I strongly believe it will bounce back stronger soon rather than the other way round. Investment comes with risk and this has experienced its own. It is a phase that will be overcomes. However, we should be reasonable in all our investments.