*WHY GOLD IS RISING*
*Gold is rising due to the increased geopolitical tensions between Israel and Hezbollah in Lebanon for several reasons:*
*Safe-Haven Demand:* Gold is traditionally considered a safe-haven asset. During times of conflict, uncertainty, or political instability, investors flock to Gold to preserve value. The escalating violence between Israel and Hezbollah has increased fears of wider regional instability, leading investors to seek Gold as a secure store of value.
*Market Volatility:* Geopolitical tensions often create volatility in other asset markets, such as stocks and bonds. Investors shift away from riskier assets and into safer ones, like Gold, which tends to rise when confidence in traditional financial markets weakens.
*Inflation Concerns and Commodities:* War or conflict often disrupts supply chains, particularly in commodities like oil, which can lead to inflationary pressures. Investors may buy Gold as a hedge against inflation, further driving up demand.
*Interest Rates and Monetary Policy:* In periods of geopolitical tension, central banks may adopt more dovish policies (such as lowering interest rates) to stabilize economies. Lower interest rates make non-yielding assets like Gold more attractive in comparison to bonds or savings.
*In summary, the Israel-Lebanon conflict is boosting geopolitical risk, which drives demand for Gold as a safe-haven asset, pushing its prices higher.*
