Gold prices rise amid Israel-Gaza conflict and US economic indicators

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Gold prices experienced a slight increase today, influenced by the ongoing Israel-Gaza conflict and anticipation of key US economic indicators, including the US third-quarter GDP figures and the PCE price index. increased by 0.7% to $1,983.89 per ounce, while US rose by 0.5% to $1,995.20.

Indicators such as the and also saw an increase, which somewhat limited the gains in gold prices. The Federal Reserve’s interest rate decisions, which are monitored by the CME FedWatch tool, are expected to be swayed by these economic indicators. If signs of an economic slowdown emerge, the Fed may hold off on rate hikes, which could further support gold prices.

In contrast to gold’s performance, spot silver fell by 0.3% to $22.87 per ounce today. However, other precious metals such as platinum and palladium recorded gains.

The recent uptick in gold prices comes amidst a backdrop of increased business activity in the US this October, which contrasts with a decline in the euro zone. Meanwhile, China’s gold consumption has seen a significant rise due to its economic recovery and increased demand for gold. According to the China Gold Association, there was a 7.32% increase in China’s gold consumption in the first three quarters of 2023.

Bob Haberkorn of RJO Futures commented on these trends and their impact on the precious metals market, highlighting the influence of geopolitical events and economic indicators on gold prices.

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