The price of the metal has climbed by about 9% since the Hamas attack on Israel and a regional escalation of the conflict would likely boost Gold further.

While we believe that safe-haven flows would eventually reverse, Gold has proven its worth as a diversifier again. In addition, we ultimately see support for Gold as the slowing US economy allows Fed officials to move toward monetary easing – which would likely lead to lower yields and a lower opportunity cost of holding the non-interest-bearing metal.