The conflict between Palestine and Israel broke out last weekend, and the market's risk aversion sentiment quickly increased. This supported gold's sharp rise at the opening of the week, and the dollar and crude oil also rose. Under normal circumstances, geopolitical conflicts push the U.S. dollar and gold to rise at the same time, but as time goes by, investors tend to favor the U.S. dollar over gold. At this time, the U.S. dollar will continue to rise, suppressing gold instead. In addition, this rise in crude oil will intensify inflationary pressure. Expensive oil prices mean that interest rates may be higher and may last longer. This will support the Federal Reserve to continue to tighten policy and pose potential risks to gold.