This week Marketwatch reported that amid high levels of geopolitical uncertainty, safe-haven demand has driven the price of gold above the $2,000 per ounce mark, aiding the precious metal to outperform the S&P 500 index for 2023.

Since armed Palestinian militants with Hamas conducted a surprise raid on an Israeli border region with Gaza on October 7th, gold bullion has rallied approximately 10%. It is believed by experts and traders that the geopolitical uncertainty being produced by the conflict, in such a vital region for the world’s energy markets, will continue to drive up the price of gold.

Gold is typically utilized by investors during times of market uncertainty to hedge risks and preserve value. Gold has traditionally been seen as a safe haven asset for investors during times of economic instability, stock market crises, wars, and pandemics.

In a monthly outlook, Brien Lundin, the editor of Gold Newsletter wrote, “The brutal Hamas attack on Israel sent shock waves around the world – and sent the price of gold soaring.” 

Since January 1st, the S&P 500 index, which tracks the 500 largest companies listed on the US stock exchanges, has gained about 8%. Meanwhile, according to Dow Jones market data, front-month gold futures rose 9.2% over the same period.

The current front-month contract for gold, futures for October delivery, has risen above $2,000 per ounce Friday. That is the highest settlement value seen since May 16th. Since the start of the month, the price has risen over 7.5%.

At the same time, the S&P 500 is on track for its third consecutive month of declines according to Marketwatch. The outlet has written that if the S&P 500 finishes October down, it will be the first time the index has suffered three losing months in a row since March of 2020.