Here is the XAUUSD news update for today, October 19, 2023. Gold prices have entered a bullish consolidation phase around $1,950 after reaching a two-month high of $1,963 on Wednesday. Gold buyers are currently awaiting the speech of Federal Reserve (Fed) Chairman Jerome Powell on Thursday, which is expected to have a significant impact on the valuation of the US Dollar (USD) and gold prices. All focus is now centered on Jerome Powell's speech.

Gold prices continue to receive support from rising tensions in the Middle East, particularly following a deadly attack on a hospital in Gaza by Israel, resulting in the deaths of at least 500 people, including women and children.

The attack also affected a UN-run school housing refugees, although the Israel Defense Forces (IDF) did not acknowledge responsibility for the attack.

Ongoing tensions between Hamas and Israel are escalating with the arrival of US President Joe Biden in Israel and his initial comments. President Biden stated that "the US will ensure Israel has what it needs to defend itself."

Amidst the increasing geopolitical tensions and rising oil prices, there is a stronger push towards safe-haven assets such as gold and the US Dollar (USD).

The US Dollar is also supported by a rising trend in US Treasury bond yields across all maturities, as expectations strengthen that the Fed will keep interest rates higher for a longer period.

John Williams, President of the New York Fed, expressed on Wednesday that interest rates need to remain high for a while to bring inflation back to the central bank's target of 2%.

Meanwhile, Fed Governor Christopher Waller argued that the central bank should be more cautious in raising interest rates while continuously evaluating the direction of the economy and inflation levels in the US. Fed Governor Michelle W. Bowman also agreed that although inflation has eased slightly, it remains too high.

In a situation where the US Dollar strengthens and US Treasury yields rise, gold prices fell from their two-month high and dipped below the psychological level of $1,950 on Wednesday.

As of Thursday, gold prices are gaining momentum for further increases while awaiting Chairman Powell's speech at the Economic Club of New York Luncheon.

The statements he will deliver regarding policy direction will be the focus, especially after several Fed officials recently made more dovish comments. Currently, the market expects the Fed to hold a pause on interest rate hikes in November, but there is a possibility of a rate hike in December at around 37%.

Before Jerome Powell's speech, data on Unemployment Claims and Existing Home Sales in the US will also be of interest. Additionally, gold traders will continue to monitor US corporate earnings and geopolitical developments in the Middle East.


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This is an explanation regarding "XAUUSD Today: October 19, 2023 - Focus on Jerome Powell's Speech." This analysis is based on fundamental and technical views from trusted sources and does not constitute advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research on other forex information as a reference for your trading.

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