Here is the update on XAUUSD today, October 12, 2023. Gold prices (XAU/USD) reached a two-week high during the Asian session on Thursday, showing a strong recovery from the seven-month low of $1,810 that occurred last week.

This increase was triggered by rising geopolitical tensions in the Middle East, with gold once again viewed as a safe-haven asset, supported by the recent weakening of the US Dollar. Additionally, low global bond yields have also positively impacted this precious metal.

With this latest increase, gold prices have recovered more than 30% from the decline that occurred in September, and this positive movement seems unaffected by the overall positive sentiment in the stock markets.

This indicates that XAU/USD still has upward potential, especially with speculation that the Federal Reserve (Fed) is nearing the end of its interest rate hike cycle. However, traders may want to wait for the latest US consumer inflation data to be released during the North American session as additional consideration.

Gold Prices Supported by Geopolitical Tensions & Dovish Fed Stance:

  • Tensions between Israel and Hamas continue to support gold prices as a safe haven.
  • Federal Reserve officials argue that the recent spike in Treasury yields makes interest rate hikes less critical.
  • Fed Governor Christopher Waller stated that higher market interest rates provide flexibility for policymakers.
  • US PPI exceeded expectations in September, although inflation tends to slow.
  • Investors are increasingly confident that the Fed is nearing the end of its tightening cycle and that rates have peaked.
  • US 10-year Treasury yields have dropped from last week's 2007 highs.
  • The weakening US Dollar supports gold prices.
  • The minutes from the September FOMC meeting showed majority support among Fed members for rate hikes.
  • Market participants are awaiting US consumer inflation data as a clue for the Fed's rate hikes.
  • Headline CPI is expected to slow in September, with annual inflation declining.
  • Core CPI is expected to remain stable with a monthly rate of 0.3% and an annual rate of 4.1%.
  • The CPI report will influence Fed policy and commodity prices.


Warning!

This is the explanation regarding "XAUUSD Today: October 12, 2023 - Gold Prices Strengthen Rapidly!" This analysis is based on fundamental and technical views from reliable sources and is not intended as advice or solicitation. Always remember that this content is designed to enrich readers' information. Always conduct your own independent research on other forex-related information as a reference for your trading.

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