Gold rose globally against the backdrop of the escalation of Israel’s bombing of Gaza

Gold prices rose today, Wednesday, October 18, 2023, after the escalation of Israel’s bombing of the Baptist Hospital in Gaza, according to Reuters.

It stated that a bloody explosion in Gaza increased fears of the escalation of the regional conflict, which led to the continued demand of anxious investors for the metal, which is considered a safe haven, despite strong American economic data and expectations related to interest rates.

Gold rises in spot transactions

By 0123 GMT, spot gold rose 0.4% to $1,929.89 per ounce, and US gold futures jumped 0.4% to $1,942.70.

More than 500 Palestinians were killed in a hospital explosion in Gaza City on Tuesday, sparking protests in the West Bank and across the Middle East.

Gold prices have risen $100 since the start of the conflict despite the strong US economic data that was issued recently and reinforced bets related to high interest rates that lead to a rise in the dollar and Treasury bond yields.

US retail sales

U.S. factory production and retail sales rose more than expected in September, indicating that the economy finished the third quarter on a strong note.

Markets are now awaiting Federal Reserve Chairman Jerome Powell's speech tomorrow, Thursday, for signals on interest rates.

Metal prices

As for other precious metals, silver in spot transactions increased 0.5% to $22.93 per ounce, and platinum rose 0.2% to $898.77. While palladium fell 0.8% to $1,134.93.

Investors are currently awaiting the speech of Jerome Powell, Chairman of the Federal Reserve, tomorrow, Thursday, searching for hints on the path of interest rates.

The precious metal received a boost, too, after data showed that the Chinese economy grew at a faster-than-expected pace in the third quarter on an annual basis.

The spot price of silver rose by 1.2% to $23.09, and platinum by 0.34% to $900.32.

Kelvin Wong, senior market analyst at OANDA, said that gold benefited from the combination of geopolitical risk premium against the backdrop of fears of a prolonged conflict, momentum after breaking the key technical level above, and risks of stagflation due to rising oil prices.

At least 500 people were martyred in an Israeli raid on the courtyard of the Al-Ahly Arab Hospital in the Gaza Strip, which houses hundreds of patients, wounded and people forcibly displaced from their homes due to the raids, according to what the Palestinian Ministry of Health announced.