Gold price (XAU/USD) recovers swiftly to around $1,850 as dismal market sentiment propelled by escalating tensions between Israel and Hamas improves the appeal for safe-haven assets. The yellow metal rebounds as the support from deepening geopolitical tensions offset the hit from a surprisingly strong Nonfarm Payrolls (NFP) report for September.
Strong United States employment growth has prompted bets for one more interest rate increase from the Federal Reserve (Fed) as progress in taming inflation could slow down ahead. Fed Governor Michelle Bowman said over the weekend that she supports further policy-tightening by the central bank to bring down inflation to 2% in a timely manner. Going forward, the US Consumer Price Index (CPI) data will be keenly watched by the market participants. Gold price capitalizes on the Israel-Hamas conflict as the appeal for safe-haven investments improves. The precious metal recovers after a consolidation breakout and is expected to extend recovery to near the 20-day Exponential Moving Average (EMA), which trades around $1,870.00. The broader outlook for Gold price is bearish as the 50-day and 200-day Exponential Moving Averages (EMAs) have delivered a death cross. Momentum oscillators recover after turning to extremely oversold levels.
