Investors have momentarily shifted their attention away from the geopolitical crisis in the Middle East to focus on two important reports. Beginning on Thursday at 8:30 AM EDT, the government will release a series of reports, with the most important component being the latest GDP for the third quarter (Q3).

Gold prices, both physical and futures, are down about $8.00 to $9.00 today. However, one of the largest contributors working to lessen the price decline is dollar weakness. The dollar has lost 0.62% or 65 points, taking the dollar index to 105.335, a low not seen since Thursday, October 12. Dollar neutrality or strength today would have magnified the downside pressure considerably.

Gold prices are currently in an accelerated and dramatic rise in price, with clear-cut geopolitical reasons for these recent moves. What is most surprising and welcomed is how gold is once again acting as a haven asset, a position it fell out of favor with some time ago.

It was not one singular issue or event that has taken gold to the highest level since the beginning of August. These factors include but are not limited to a major potential pivot by the Federal Reserve and their exceedingly restrictive monetary policy, the recent geopolitical crisis in the Middle East which could evolve from a regional conflict, spreading throughout the Middle East.

A senior Hamas representative in Lebanon told Politico that they are now coordinating with the Iranian-backed militant group Hezbollah. According to the representative, both militant groups have warned of “preemptive action against Israel.”

Gold, a timeless symbol of wealth and stability, has seen modest gains in recent times, largely in response to the extreme uncertainty pervading the Middle East. The ongoing tumult in the region, notably the Israeli-Hamas conflict, has once again demonstrated the unique role gold plays in financial markets.

This interview was recorded on Thursday. October 12. 2023 at 7PM EDT afternoon. Ivan Bayoukhi and I talk about the recent attack by Hamas and the response by Israel.

As of 3:55 PM EDT, gold futures basis the most active December contract is trading dramatically higher, up $58.50 and fixed at $1941.40. Today’s surge in gold pricing is the direct result of attraction by market participants to move a portion of their portfolio into a safe haven asset.

The U.S. Bureau of Labor Statistics released the latest information on the current inflationary pressures today.  “The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.4 percent in September on a seasonally adjusted basis, after increasing 0.6 percent in August, the U.S. Bureau of Labor Statistics reported today.

As of 4:20 PM EDT gold futures basis the most active December contract is up $12.20 and is fixed at $1887.50. Gold opened at $1873.70 and traded to a high of $1890.90, and a low of $1871.70. The result of gold opening near the low and closing near its high while posting a solid gain created a large green candlestick.