Wall Street strategists are betting on gold rally amid Middle East tensions

Gold prices surged last week as renewed conflict in the Middle East reignited demand for safe-haven assets. According to Kitco News, the precious metal soared past $3,400 per ounce, nearing new all-time highs.

The agency’s latest weekly survey reveals strong bullish sentiment among industry experts, who anticipate further gains for gold. With investors closely monitoring the situation, the bullion remains a key asset for hedging against market turbulence. Escalating geopolitical risks, coupled with global de-dollarization trends and potential Federal Reserve rate hikes, are likely to push prices higher in the short term.

Daniel Pavilonis, a senior commodities strategist at RJO Futures, analyzed the historical relationship between oil and gold during Middle Eastern conflicts. He noted that oil price movements often signal shifts in gold’s trajectory as both assets see heightened demand during periods of instability. However, Pavilonis said past gold rallies tied to geopolitical crises have been short-lived, and a sustained uptrend would require further escalation.