Gold Gains as Attack on Israel Bolsters Metal’s Haven Status
- Risk aversion takes hold as markets brace for volatility
- Gold options volatility, call skew also climb on Monday
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Gold rose the most since May on increased haven demand after tensions ramped up in the wake of the Hamas attack on Israel.
The precious metal gained as much as 1.7% on Monday as financial markets braced for headwinds and volatility from the shock attack by Gaza militants. Oil surged as the conflict threatened to inflame tensions in the Middle East, home to almost a third of global supply. The dollar also strengthened. Comex gold implied volatility and call skew also picked up as December futures rose the most since August.