The war between the Palestinian movement Hamas and Israel in the Gaza Strip in the Middle East has triggered a reaction of fears among investors, traders and other participants in the global financial market that a wider military conflict could occur in this geopolitically fragile part of the world, which could then result in a large-scale the war of a large part of the Arabs against the rest of the world, referred to as the “Holy War”, which is mainly sponsored by Islamic terrorist organizations today. Investors’ fears about the subsequent instability of financial markets and a possible increase in inflation increased their interest in gold, and its price rose above the USD 1,900 mark per troy ounce.
Currently, during the European morning of Tuesday, October 17, 2023, at approximately 7:05 CET, investment gold was trading on the COMEX (Commodities Exchange Centre) commodity market at USD 1,928.40 per troy ounce, with a daily decrease of – 0.31% of its previous price. According to the analysts of brokerage companies, the current drop in the price of gold is more likely to be related to the momentary selection of profits by investors and traders, which they achieved in the previous period, especially in the framework of short-term trades with a predominance of a speculative nature. This current price of investment gold, according to the data resulting from the technical analysis, represents its total annual increase of + 10.35% of its price over the last 52 weeks, but a mere increase of 1.24% from the beginning of this year, 2023.
This current price of gold was reached when the exchange value of the US dollar (USD), as the main commodity currency of the global markets, was at a point level according to the DXY dollar index (US Dollar Currency Index) in the amount of USD 106.31 points with a daily growth of + 0.06% of the point value according to this index, which compares the value of the USD with another six major world currencies. On the indicated day and time, the so-called global currency pair of the single European currency Euro (EUR) and the US dollar (USD) as the world reserve currency was traded on the foreign exchange market in forex operations at a mutual exchange rate of USD 1.055 per EUR with the previous daily by a decrease of EUR by -0.104% against the USD.
Gold, used as a safe-haven investment in times of political and financial uncertainty, has soared by more than $100 per troy ounce since October 6, 2023, as it fell to a seven-month low on the reported date of 10/6/2023 thanks to safe-haven inflows, however, when the conflict between Israel and Hamas broke out on October 7, 2023, when the fighting entered the 11th day of the war, the price of gold strengthened significantly. US officials have warned that the war between Israel and the Hamas militant group could escalate as US warships head to the area amid growing clashes on Israel’s northern border with Lebanon. While investors wait for further updates on the war between Israel and Hamas, they are also awaiting a closely watched speech by Federal Reserve Chairman Jerome Powell later this week regarding the development of US interest rates, which have a direct the effect on the price of gold in relation to the exchange value of the US dollar (USD).