As investors reacted to Hamas's brutal attack on Israel on Saturday, demand for safe-haven assets increased, giving gold a new bullish momentum.

Many analysts believe that the escalation of tension in the Middle East is just the latest geopolitical factor that will continue to support the precious metal in 2024.

On Sunday, the Israeli government officially declared war and took action in response to Hamas following Saturday's sudden attack, which resulted in the deaths of hundreds of Israelis.

The global economy and financial markets will naturally be sensitive to the escalation of the war. Political analysts discuss that the growing tension may drag other countries into the conflict, such as Iran and the United States, which would impact energy markets and inflation accordingly.

From the perspective of Ipek Ozkardeskaya, senior analyst at Swissquote Bank, the fact that Iran and the U.S. are involved in the turmoil indicates that the tension may escalate further. It's difficult to predict oil prices due to geopolitical disturbances, but a level of $90 per barrel could ensure a decent supply for American oil, as the escalation and prolonged tension in the Middle East could be the final straw that brings the world closer to the brink of recession and dampens appetite for oil.

Regarding gold, despite its good growth potential, even with the help of geopolitics, bond yields remain high. U.S. bond yields will remain a decisive factor for medium and long-term gold price indicators. At the moment, bonds are on an upward trajectory.

According to analysts, even in the short term, Middle East issues will not be resolved, and even if tension decreases, gold prices may still return to their support level of $1820. At the same time, gold remains an important refuge as the role of the U.S. dollar as the world's reserve currency continues to weaken.

Also, according to analysts, including OANDA Senior Market Analyst Edward Moya, the new conflict in the Middle East arises because growing debt and deficits in the U.S. affect the bond market. According to his observations, foreign investors are now reluctant to buy U.S. debt. However, the war in Israel has created a new challenge that could support gold prices.