The recent incident involving a cargo ship hit near Oman has once again highlighted the security risks in the Strait of Hormuz. Rabobank's Senior Macro Strategist, Bas van Geffen, points out these concerns as potential disruptions for the oil trade. Despite this, Brent oil trades around $73.8, at the lower end of its weekly range.
What Does This Mean for the Gold Market?
Historically, gold has been seen as a safe haven in times of geopolitical uncertainty. With increased instability, like the current Hormuz risks, investors might turn to gold to safeguard their assets. This could drive demand higher and potentially benefit gold prices.
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