Bullions: Reasons to be long

Concerns over the geopolitical situation in the Middle East increased after a bomb attack in Tel Aviv early this week. This is the first Palestinian bombing in Israel since Hamas came to power three weeks ago. The situation would continue to be closely monitored, with the Israeli acting Prime Minister Ehud Olmert likely to decide on a response to the attack while the USA has warned the Hamas-led Palestinian government against defending terrorist acts. Further, the nuclear standoff in Iran continues, with the Iranian President Mahmoud Ahmadinejad issuing a warning to any nation considering attacking Iran, while the USA is planning to meet with other world powers today to consider sanctions against Iran.