The Israel-Hamas conflict has pushed the price of gold over $2,000 per ounce.

The Israel-Hamas conflict has pushed the price of an ounce of gold over $2,000, a level not seen since May.

SJC gold bar prices in Vietnam have also increased, from VND 70,3 million per teal to VND 71 million per teal.

The world's attention has been focused on the awful developments in the Middle East in recent weeks. The violence has rewired major geopolitical ties in a very short period of time, and with rising worry that the conflict will expand across the Middle East, the ramifications are rapidly echoing. The scenario is unpredictable and fast-moving, making it impossible to foresee how it will play out.

If the Israel-Hamas war extends throughout the Middle East, supply chain disruptions will become more severe, driving up the price of oil and many other commodities and putting pressure on inflation.

According to Mr. Ryan McIntyre, managing partner at Sprott Inc., one of the reasons why gold's negative correlation to bond rates is breaking down is because more and more investors are getting concerned about the United States' economic outlook and mounting debt, which has topped $33 trillion.

McIntyre, however, stressed that this is about more than simply the extent of the US government's debt. "The deficit is the most frightening thing to me." I'm more concerned about the overall trend of events. "The rising deficit indicates that the United States is not getting its finances in order," he added.

The significant rise in interest rates is one reason why markets are increasingly concentrating on the United States' expanding debt. With Fed Funds rates ranging between 5.25% and 5.50%, the United States is currently spending more money servicing its $33 trillion debt than it does on national defense.

Gold prices may rise to $2,022, then to $2,048-$2,070.

"Along with the Fed's aggressive rate hikes, it has reduced its balance sheet, significantly reducing M2 money supply, the amount of money held by the public" , McIntyre said.

Mr. Colin, an FX analyst, said the Israel-Hamas conflict may cause gold prices to rise. However, if this war continues with no major consequences for the Middle East or the global economy, gold prices may suffer profit-taking pressure.

According to technical analysis, gold prices may rise to $2,022, then to $2,048-$2,070.