[miningmx.com] – THE Paris terrorist attack could increase demand for risk aversion investments such as gold, said Bloomberg News citing analysts Eugen Weinberg of Commerzbank, Fabio Scacciavillani of Oman Investment Fund, and Edward Bell of Dubai-based bank Emirates NBD PJSC.
“The implication for the oil market is limited, with the possibility of lower demand at least outweighed by higher geopolitical tensions,” said Weinberg, head of commodities research at Commerzbank. “As for gold, I wouldn’t be surprised to see at least a short-term positive reaction on the back of higher risk aversion,” he said.
Gold could be the exception among commodities as investors shift away from assets perceived as risky, Bell, a commodities analyst at Emirates NBD, told Bloomberg News.
“We may see a general shift to safe-haven type assets,” he said.
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