Gold prices rose in the wake of Hamas’ attack on Israel and Israel’s response.

Gold stocks were also rising. Newmont Mining (NYSE:NEM) was up 1.7% over the weekend after gaining 4% on Oct. 6. Barrick Gold (NYSE:GOLD) was up 2.2% after gaining 1.5% on Oct. 6.

Gold is considered a “safe haven” in uncertain times. This is especially true in Asia, where the spot price in Shanghai is often higher than elsewhere.

Spot gold was trading at $1,847 per ounce in New York early on this morning. Just before the attack, the price was $1,834.

A Rush to Gold?

Before the attacks, traders said gold was losing its dazzle. It rose to near-record highs in March during the regional banking crisis and amid fears of inflation. But the crisis passed, and price gains have been moderating over the last few months.

Consumer interest in gold, however, remains high. Costco (NASDAQ:COST) sells out of its 1-ounce gold bars whenever they go on sale.

China was the world’s largest gold producer last year, at 375 metric tons. Russia and Australia also deliver over 300 metric tons to the market each year. The U.S. ranks fifth in gold production, with 172 million metric tons last year.

Gold does have industrial uses as a conductor, but only 11% of gold goes there. Most gold goes into jewelry or bullion.

Gold prices peak at times of high volatility, like during the Iran hostage crisis in 1980 or the financial crisis in 2008. The most recent peak in gold’s price came in August 2020, during the Covid-19 pandemic, at $2,327 per ounce.

A wider conflict in the Middle East could see gold approach its 1980 high.

As of this writing, Dana Blankenhorn held a LONG position in COST. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.