Here is the XAUUSD news update for today, October 9, 2023. Gold prices reached a six-day high in the Asian market on Monday, with a price range around $1,850. The gold market experienced stability after the initial response to the weekend news regarding tensions in the Middle East, which triggered concerns among investors and led to fund flows into assets considered safer in the financial market.

Gold prices increased by $15 at the start of trading on Monday as the market felt the "risk-off" turmoil due to airstrikes conducted by Hamas from the Gaza area against a city in Israel near the Gaza border.

This attack resulted in nearly 1,000 deaths and numerous hostages. In response, Israel declared a 'state of war' and launched airstrikes that have killed over 400 people and damaged several buildings in the besieged Gaza Strip.

The rekindled geopolitical conflict in the Middle East has shaken investors and caused a surge in safe-haven assets like gold prices, the US Dollar, US Treasury Bonds, and the Japanese Yen.

Fears arise that violence between Hamas and Israel could spread to other regions, especially due to Iran's support for Hamas and Hezbollah in Lebanon, which also raises the threat of closing the Strait of Hormuz.

The potential closure of this strategic shipping route by Tehran could lead to rising oil prices, which in turn raises concerns about higher inflation while central banks worldwide are trying to control inflation rates.

The increasing geopolitical tension also poses a threat to global economic growth and adds instability to the markets. Amid such conditions, gold prices received a renewed boost to continue their recovery on Friday, driven by mixed improvements in the US labor market.

As an initial response to the key US Nonfarm Payrolls data, gold prices dropped to a seven-month low of $1,811 before experiencing a significant rise and closing the week nearly reaching today’s high of $1,835.

The key NFP figures showed a promising increase of 336,000 jobs in September, exceeding the estimate of only about 170,000 and a revision of 221,000.

However, the Average Hourly Earnings growth only rose by 4.2% YoY in September, slightly lower than the increase of 4.3% in August. The Unemployment Rate also surprisingly remained stable at 3.8% during the reported month.

Slowing wage inflation and deteriorating conditions in the US labor market have raised uncertainty regarding the Federal Reserve's (Fed) rate hike forecast at the end of this year.

This puts pressure on the US Dollar and US Treasury yields. On Friday, investors also adjusted positions ahead of this week's important US inflation data release, prompting gold prices to find a stronger footing.

Moving forward, attention will focus on the latest developments in the Middle East conflict, which may impact the valuation of the US Dollar and gold prices. The possibility of further increases in gold prices may be limited if the US Dollar is considered a favored safe-haven asset.

Gold prices may also experience volatility due to low trading volumes, especially since Japanese and American markets will be closed on Monday for their respective national holidays.


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This is an explanation regarding "XAUUSD Today: October 9, 2023 – Gold Rises vs Middle East Turmoil." This analysis is based on perspectives from fundamental and technical viewpoints from reliable sources and is not intended as advice or solicitation. Always remember that this content aims to enrich readers' information. Always conduct independent research first regarding other forex information to use as a reference in your trading.

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