The price of oil and gold rose on Monday as investors looked to ‘safe haven’ investments following the terrorist attacks in Paris.
Brent crude oil has climbed 30 cents to $44.90 a barrel after France launched air strikes in Syria. The price of gold rose as much as 1 per cent, according to Reuters.
“Amid this latest tragedy, the typical gainers seen in times of uncertainty and geopolitical tension have been moving higher, with crude oil, gold and treasuries all gaining,” said Joshua Mahony, Market Analyst at IG.
Isis claimed responsibility for the co-ordinated attacks on public spaces that claimed 120 lives in Paris on Friday evening. After the attacks, analysts said that oil and other commodities might suffer further if the threat of terrorism cut demand.
Prices are rising instead as investors are looking to oil, gold and treasuries, which are seen as safer investments than stocks, because of uncertainty around the economic consequences of the attacks.
France has now launched air strikes in Syria which could lead to the oil price rising further if the Middle East destabilises. Conflict in the region might impact supply and dent the oil glut that has seen the price per barrel slashed by half in a year.
Few economists expect the Paris attacks to have a long term impact on the French economy, though in the short term consumer spending is likely to be lower as Parisians avoid the shops.
