Breaking News: Massive Military Operation Unfolds in West Bank
Thousands of troops from special units have been mobilized for a large-scale operation in the northern West Bank, set to last several weeks. This marks the largest military operation in the West Bank since 2002, with the army expecting to continue the operation for several days.
The United Nations (UN) reported last Wednesday that Israeli air strikes in the West Bank had resulted in the deaths of 128 Palestinians, including 26 children, since October 7, according to the BBC.
The surge in violence in the West Bank coincides with the ongoing war in Gaza, which was sparked by Hamas’s attack on southern Israel in October.
Market Update: Gold Price Rises Amidst Uncertainty
As of now, the gold price (XAU/USD) is trading 0.05% higher on the day, reaching $2,525.15.
Understanding Risk Sentiment in Financial Markets
In the world of finance, “risk-on” and “risk off” are commonly used terms to describe investor sentiment towards risk. During a “risk-on” market, investors are optimistic and more willing to invest in risky assets. In contrast, a “risk-off” market reflects investor concern for the future, leading to a preference for less risky assets.
During periods of “risk-on”, stock markets and most commodities (excluding Gold) tend to rise, along with currencies of major commodity exporters. In a “risk-off” market, Bonds, Gold, and safe-haven currencies like the Japanese Yen, Swiss Franc, and US Dollar perform well.
Currencies heavily reliant on commodity exports, such as the Australian Dollar, Canadian Dollar, New Zealand Dollar, Ruble, and South African Rand, tend to rise during “risk-on” periods due to increased demand for commodities.
On the other hand, major currencies like the US Dollar, Japanese Yen, and Swiss Franc are favored during “risk-off” periods for their stability and safe-haven status.