The price of gold rose per troy ounce during the Asian session on Wednesday, driven by rising geopolitical tensions between Israel and Hamas

The price of gold rose to around $1,940 per troy ounce during the Asian session on Wednesday, driven by rising geopolitical tensions between Israel and Hamas, increasing demand for gold as a safe-haven asset. Conflicting reports emerged about an Israeli air attack in Gaza, with Gaza authorities reporting casualties and Israel attributing the damage to a Palestinian attack.

Positive economic data from China further supported gold prices, as China's Q3 Gross Domestic Product exceeded expectations at 1.3%, and Retail Sales (YoY) rose by 5.5%. The US Dollar Index lost its intraday gains after these Chinese figures but US Treasury yields improved, reaching 4.83%.

US economic data also showed strength, with Retail Sales surpassing expectations at 0.7% MoM in September. Federal Reserve reports indicated Industrial Production improved by 0.3%. Fed officials expressed varying views on monetary policy, with some considering inflation and tightening measures. Investors awaited housing data and Fed speeches for further insights.

Gold is breaking the 1930 level in an attempt to break out of the long bearish channel from May. The recent correction is turning into a reversal with strong momentum, and we anticipate further progress towards the next resistance level at 1947.