Here is the XAUUSD news update today, October 11, 2023. Gold (XAU/USD) price moved with small fluctuations on Tuesday after a strong recovery from the previous seven-month low around $1,810. However, the precious metal remained stable above the $1,850 level and continued its horizontal movement during the Asian session on Wednesday. Currently, market players seem reluctant to take big risks in determining the direction of gold price movements. They prefer to wait for new clues regarding the Federal Reserve's (Fed) future interest rate hike plans. The United States (US) Nonfarm Payrolls (NFP) report released last Friday showed that wage growth remained moderate in September and this has eased concerns about inflation.


This factor, coupled with recent dovish statements from several Fed officials, has supported the possibility of a change in central bank policy. In addition, gold prices are being boosted by the Israel-Gaza conflict, which is considered a safe haven. Meanwhile, the market is still pricing in the chance of at least one interest rate hike by the end of this year.


This factor, coupled with the positive mood in the stock market, may limit the potential for further upside for the precious metal. Traders now await the release of the US Producer Price Index (PPI) and the FOMC meeting minutes on Wednesday for additional impetus ahead of the US Consumer Price Index (CPI) report due on Thursday.


Daily Market Digest: Gold prices hold steady above $1,850

  • Gold prices continued to be supported by declining speculation of a Federal Reserve interest rate hike and tensions in the Middle East.
  • Atlanta Fed President Raphael Bostic said there is no need for further interest rate hikes to control inflation.
  • Minneapolis Fed President Neel Kashkari added that rising long-term bond yields could help in the fight against inflation.
  • The Fed's adjustment in interest rate path lowered US bond yields, hurting the US Dollar (USD), and benefiting XAU/USD.
  • The escalating Israel-Gaza conflict has the potential to increase crude oil prices and hamper the Fed's efforts to combat inflation.
  • This could keep the Fed in its hawkish stance and add complexity, making it difficult to achieve a soft landing.
  • Investment await US CPI data and FOMC minutes for clues on the Fed's interest rate hike plans, ahead of Thursday's consumer inflation report.


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That's the explanation of "XAUUSD Today: October 11, 2023 - Gold Price Consolidates". This analysis is based on fundamental and technical views from trusted sources, not advice or invitation. Always remember that this content is intended to enrich the reader's information. Always use independent research first regarding other forex information to be used as a reference in your trading.

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