- 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.
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.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.