Here's the XAAUSD news update for todaay, October 16, 2023. Gold prices fell again after a massive surge on Friday, returning to a three-week high of $1,933.
 
The US dollar remains resilient while US Treasury yields increase. This comes as investors consider the ongoing conflict between Israel and Hamas and the latest developments over the weekend.
 
Will the shift to safer assets continue to drive gold prices?
 
On Friday, gold saw a significant change of $100, driven by a trend towards safe-haven assets in response to geopolitical uncertainties over the weekend.
 
Additionally, investors were forced to close their short positions amid hopes that the ongoing conflict between Hamas and Israel could maintain upward price risks for gold. The precious metal surged from $1,832 to a three-week high of $1,933 during trading in the US after halting gradual gains.
 
Furthermore, low demand for US Treasury bonds due to concerns over rising deficits also provided an extra boost to gold prices. The recovery of the US dollar following the Fed's accommodative speech also supported the rise in gold prices.
 
Starting the week on Monday, gold prices decreased after a significant spike on Friday, which can be viewed as a natural correction. The correction in gold prices occurred despite a weakening US dollar. However, rising Treasury yields may also have been triggered by the drop in gold prices.
 
Investors remain cautious and are monitoring developments related to the Middle East conflict over the weekend. Israeli Prime Minister Benjamin Netanyahu pledged on Sunday to "destroy Hamas" as Israeli forces prepare to enter the Gaza Strip in pursuit of Hamas militants.
 
On the other hand, the United States and its allies are intensifying their efforts to mediate the conflict between Hamas and Israel while remaining concerned about possible Iranian intervention in the situation.
 
Iran's Foreign Minister, Hossein Amir Abdollahian, issued a warning, stating that "Iran will no longer remain a spectator in this situation and has informed Israel through its allies that if its crimes in Gaza continue, 'it will be too late tomorrow.'"
 
Looking ahead, geopolitical tensions in the Middle East are expected to continue supporting gold prices, while US dollar traders await US Retail Sales data and speeches from the Federal Reserve for new direction.
 
Gold traders are also looking forward to a speech by Federal Reserve Chair Powell, scheduled to be presented to the New York Economic Club this weekend. They hope this speech will provide new insights into the central bank's interest rate outlook, especially after last week's data showed that the Consumer Price Index rose more than expected in September.
 
Markets have nearly discounted the possibility of an interest rate hike by the Federal Reserve next month, and currently, there is about a 30% chance of a rate increase in December, according to the CME Group's FedWatch tool.
 
Warning!
 
This is the overview of "XAUUSD Today: October 16, 2023 - Potential Profits Flowing!" This analysis is based on fundamental and technical perspectives from trusted sources and does not constitute advice or solicitation. Always remember that this content aims to enrich readers' information. Conduct your own research on other forex information to guide your trading.
 
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