Posted 9th October 2023

Gold Price News: Bullion Rebounds as Geopolitical Tensions Boost Haven Demand

gold price news 0910

The gold price is showing interesting recovery signals. After a difficult week, on Friday bullion tried to reverse the recent bearish trend, jumping above $1,830 an ounce in the final trading hours.

Despite the solid U.S. macroeconomic data, with the nonfarm payrolls of September showing values well above expectations, the greenback lost ground and both gold and silver rebounded.

Gold ($/g) – 4hour chart – from Kinesis Exchange

In early trading, this morning, we have seen gold extending the rebound, reaching and surpassing the key level of $1,850 an ounce. From a technical point of view, the scenario has improved, as the selling pressure temporarily slowed down.

The weekend was sadly marked by the growing tensions in the Middle East, with the attack on Israel. This scenario could push investors to increase the presence of gold in their portfolio as safe haven asset, in case of further escalation of geopolitical turmoil.

Analysing the chart, the spot price is now farther from the key support level of $1,810, confirming the positive signals seen on Friday. A clear move above $1,850 – confirmed at the end of the trading day – could open space for further recoveries.

Of course, the main focus remains the monetary policy of the U.S. Central Bank, with investors waiting for the FOMC last minute, scheduled Wednesday. Any hawkish indication could revamp the bearish pressure on gold, while dovish signals would offer further fuel to the recent recovery attempt.

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