Gold Rallies on Israel-Hamas Conflict But Faces Resistance From Rising Yields

Gold prices have climbed nearly $100/oz since the start of the Israel-Hamas war as investors seek safety.

Gold is considered a safe haven asset during geopolitical uncertainty. Demand has shifted from risky to safe assets.

The conflict creates inflationary pressures, which supports gold prices. Prolonged instability in the Middle East is positive for gold long-term.

Gold pulled back from recent highs as dollar strength and rising yields make other safe assets attractive. Prices likely rangebound short-term.

Further escalation in the conflict could drive gold higher if it forces the Fed to halt rate hikes or pivot dovishly.