Gold Price Forecast: XAU/USD moves upward toward $1,950 on Middle-East conflict


Share:
  • Gold prices gain upward support from the Middle-East conflict.
  • Upbeat China data could provide support in underpinning the prices of Gold.
  • US Dollar strengthens on the solid economic data.

Gold price continues to gain ground, trading higher around $1,940 per troy ounce during the Asian session on Wednesday. The rising geopolitical tensions between Israel and Hamas are likely contributing to a higher demand for Gold as a traditional safe-haven asset.

On Tuesday, conflicting reports emerged regarding an Israeli air attack in Gaza, with authorities there claiming 500 casualties at a hospital, while Israel attributed the damage to a Palestinian attack, according to Reuters.

Moreover, the yellow metal could also benefit from unexpected positive economic data from China. In the third quarter, China's Gross Domestic Product exceeded expectations, showing a growth of 1.3% compared to the anticipated 1.0%. The annual report for the same quarter revealed a 4.9% increase, surpassing the expected 4.4%.

Additionally, China's Retail Sales (YoY) demonstrated a rise of 5.5%, surpassing both the previous figure of 4.6% and the expected 4.9%.

The US Dollar Index (DXY) loses intraday gains after the Chinese figures, struggling to hold ground near 106.10, by the press time. However, US Treasury yields improved, with the 10-year US Treasury bond yield reaching 4.83% could support the Greenback.

The US Bureau of Economic Analysis (BEA) revealed that Retail Sales surpassed expectations of 0.3% MoM, rising to 0.7% in September. Additionally, the Retail Sales Control Group recorded a notable increase of 0.6%, compared to the previous hike of 0.2%.

Moreover, the Federal Reserve reported that Industrial Production demonstrated improvement by 0.3%, contrary to the expected stagnation at 0.0%.

Thomas Barkin, the President of the Richmond Fed, highlighted that the current policy is already viewed as restrictive. Expressing uncertainty about the upcoming FOMC monetary policy meeting in November, Barkin emphasized that the US central bank cannot depend solely on longer-term higher bond yields to implement tightening measures in monetary conditions.

Minneapolis Federal Reserve Bank President Neel Kashkari remarked on Tuesday that inflation has persisted for a more extended period than initially anticipated and remains excessively elevated. This perspective aligns with the dovish stance maintained by several other Fed officials.

Investors will likely focus on the housing data and speeches from Fed officials on Wednesday, which could offer some hints about further monetary policy paths.

XAU/USD: technical levels to watch

Overview
Today last price 1935.92
Today Daily Change 13.02
Today Daily Change % 0.68
Today daily open 1922.9
 
Trends
Daily SMA20 1877.32
Daily SMA50 1901.01
Daily SMA100 1922.68
Daily SMA200 1929.71
 
Levels
Previous Daily High 1931.65
Previous Daily Low 1912.46
Previous Weekly High 1933.34
Previous Weekly Low 1832.62
Previous Monthly High 1953.01
Previous Monthly Low 1846.37
Daily Fibonacci 38.2% 1924.32
Daily Fibonacci 61.8% 1919.79
Daily Pivot Point S1 1913.02
Daily Pivot Point S2 1903.15
Daily Pivot Point S3 1893.83
Daily Pivot Point R1 1932.21
Daily Pivot Point R2 1941.53
Daily Pivot Point R3 1951.4

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content


Follow us on Telegram

Stay updated of all the news

Join Telegram

Recommended content

Editors’ Picks

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD stabilizes above1.0800, looks to post weekly gains

EUR/USD continues to trade in a tight channel above 1.0800 in the second half of the day on Friday, as the improving risk mood makes if difficult for the USD to gather strength. The pair remains on track to snap a five-week losing streak.

EUR/USD News

GBP/USD clings to modest daily gains above 1.2650

GBP/USD clings to modest daily gains above 1.2650

GBP/USD trades in positive territory above 1.2650 in the American session on Friday. The bullish opening in Wall Street doesn't allow the USD to gather strength and helps the pair stay on track to close higher for the fifth consecutive day.

GBP/USD News

Gold holds steady above $2,020 as US yields edge lower

Gold holds steady above $2,020 as US yields edge lower

Gold regained its traction and stabilized above $2,020 after falling below this level during the European trading hours. The benchmark 10-year US Treasury bond yield is down nearly 1% on the day below 4.3%, allowing XAU/USD to keep its footing heading into the weekend.

Gold News

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price risks decline as increasing exchange supply raises chances of profit taking

Ethereum price crossed $3,000 several times this week but the altcoin failed to sustain above this key level, raising concerns regarding its price trend. ETH price faces the risk of decline as the supply of the altcoin on exchanges is on the rise. 

Read more

Up go stocks, down go bonds

Up go stocks, down go bonds

We knew that yesterday was going to be a good day – at least for the stock markets, given that Nvidia defied the expectations that it would - maybe – fail to deliver $20bn sales in the latest quarter. 

Read more

Forex MAJORS

Cryptocurrencies

Signatures