Oil, Gold Slip After Middle East Flare-Up
Israel and Lebanon-based militant group Hezbollah exchanged missile fire on Sunday, fueling worries that tensions in the Middle East could escalate into a full-blown war.
While the market’s belief that the Federal Reserve is about to cut interest rates has driven stocks higher, other assets have moved off the back of the geopolitical crisis.
Oil prices have climbed over recent trading sessions, although key benchmarks were edging lower Tuesday. While neither Israel nor Lebanon are major producers, neighbors Iran and Saudi Arabia are.
Gold also gave up some of its recent gains Tuesday, having been powered higher by investors’ desire to hold safe-haven assets during times of uncertainty. It slipped 0.5% to just over $2,540 an ounce in early-morning trading.