Here’s the update on XAUUSD for today, October 10, 2023. Gold prices (XAU/USD) experienced a significant increase of over 1% on Monday, maintaining levels above $1,800 amid rising geopolitical tensions in the Middle East.
 
This precious metal, regarded as a safe haven and typically rising in value during political and economic turmoil, also received additional support from the ongoing decline in U.S. Treasury bond yields.
 
The drop in yields occurred due to decreasing speculation regarding further interest rate hikes by the Federal Reserve (Fed). These factors, along with a weakening U.S. Dollar (USD), pushed commodity prices higher for three consecutive days on Tuesday.
 
Gold reached a one-week high during the Asian session and has now recovered over $50 from its lowest point in seven months on the previous Friday.
 
However, the generally positive atmosphere in the stock market has made optimistic traders reluctant to place new bets on XAU/USD, limiting potential gains.
 
Investors also appear to be absent, preferring to wait for the release of important data from the United States (U.S.) this week, such as the FOMC monetary policy meeting minutes on Wednesday and the latest consumer inflation data on Thursday.
 
Daily Market Movers:
 
  • The military conflict in the Middle East between Israel and Hamas continues to support gold prices, peaking at a one-week high on Tuesday.
  • Federal Reserve officials expressed caution regarding interest rate hikes, citing rising Treasury bond yields as support against inflation.
  • Fed Vice Chairman Philip Jefferson also adopted a cautious tone, suggesting careful action in raising the federal funds rate.
  • Dallas Fed President Lorie Logan acknowledged positive developments in inflation, but strong output and spending led investors to lower expectations for further rate hikes.
  • Changes in the Fed's interest rate hike plans caused a further decline in U.S. Treasury bond yields, supporting a weaker USD and benefiting XAU/USD.
  • Nevertheless, the market remains anticipatory of at least one potential rate hike from the Fed by the end of this year, which could limit the decline in U.S. Treasury yields and the value of the USD.
  • Investors are now awaiting the release of the FOMC meeting minutes and U.S. consumer inflation data on Wednesday and Thursday, seeking clues regarding the Fed's next policy steps.
 
Warning!
 
This concludes the analysis of "XAUUSD Today: October 10, 2023 – Rich Signals from U.S. Bonds!" This analysis is based on fundamental and technical perspectives from trusted sources and should not be considered advice or solicitation. Always remember that this content aims to enrich readers' information. Conduct your own independent research on other forex information to serve as a reference for your trading.
 
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