Here is the XAUUSD news update for today, October 26, 2023. Gold prices (XAU/USD) rose for the second consecutive day on Thursday, nearing a new weekly high, supported by global fund flows into safer assets in response to the potential escalation of the Israel-Hamas conflict.
 
However, this increase aligns with the drop in US Treasury yields and continued US Dollar buying, as the US Federal Reserve (Fed) hints at a tighter policy, impacting gold prices.
 
Investors are monitoring US economic data and Federal Reserve developments to predict the short-term direction of gold prices. Preliminary Q3 GDP data, Durable Goods Orders, and other factors will influence XAU/USD price dynamics.
 
Here’s a daily summary affecting market movements:
 
  • Gold prices continue to gain support from geopolitical concerns, despite rising US Treasury yields and increased interest in the US Dollar (USD).
  • Israel has intensified strikes against Hamas targets in Gaza and is preparing for a ground invasion, raising the risk of a wider conflict in the Middle East.
  • Several international countries are engaging in diplomacy to address the conflict between Israel and the Palestinian militant group Hamas.
  • Expectations that the Federal Reserve will maintain a tighter policy have kept US government bond yields stable, near a 16-year high of around 5%.
  • XAU/USD buyers seem unaffected by the recent US Dollar strength after hitting a one-month low on Tuesday.
  • The initial US GDP projection shows annual economic growth of 4.2% in Q3, compared to 2.1% in Q2.
  • Market focus will shift to the US PCE Price Index, which will guide market movements ahead of next week’s FOMC meeting.
 
In its technical analysis, gold prices seem poised to reach the psychological level of $2,000. After fresh buying around the previous resistance breakout point at $1,953-1,952, which then turned into support, the upward movement supports optimistic traders.
 
However, the Relative Strength Index (RSI) on the daily chart is nearing the overbought zone, suggesting that gold prices may face strong resistance around $2,000. Nevertheless, if the rally extends above this level, there's potential to reach the next hurdle around $2,022.
 
On the downside, the Asian session low of around $1,980 appears to be the initial support level before reaching the $1,971-1,970 area. Any further selling pressure could lead to a decline to the weekly low, around the $1,953-1,952 zone, which previously served as strong resistance. A clear break below this level would make gold vulnerable to testing the 200-day Simple Moving Average (SMA), located near the $1,932-1,931 region.
 
Disclaimer!
 
This is an analysis of "XAUUSD Today: October 26, 2023 - Is Hamas-Israel Driving Gold Surge?" based on fundamental and technical perspectives from trusted sources. It is not advice or an invitation. Always remember that this content aims to enrich readers' information. Always conduct independent research on other forex information to be used as a reference in your trading.
 
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