Sharply Higher After Shock Attacks By Gaza Militants

Gold prices have risen by 1% in the Asia-Pacific trading session, driven by increased demand for safe-haven assets following a shock attack by Gaza militants over the weekend, which has escalated tensions in the Middle East.

• This gain follows a 0.7% increase observed on Friday, rebounding from its lowest level since March. Gold had been facing downward pressure due to signals from the Federal Reserve that indicated a commitment to maintaining tight monetary policy, which negatively impacted non-interest-bearing assets.
• Friday's surge in US nonfarm payrolls exceeded expectations, leading to a notable uptick in US Treasury yields. However, it's important to note that various aspects of the report presented a more mixed picture, which helped ease the initial knee-jerk spikes in Treasury yields. Dip buyers, short covering, and technical buying ahead of the Columbus Day long weekend helped trim bond losses.
• In addition to these market dynamics, over the weekend, Fed Governor Michelle Bowman expressed concern about persistently high US inflation rates and indicated that further monetary tightening was likely to be necessary.
• In summary, gold's recent price movements reflect a complex interplay of factors, with geopolitical events in the Middle East, monetary policy signals from the Federal Reserve, and economic data releases all influencing the precious metal's performance.