XAU/USD: Gold Pops 1.2% Out of the Gate as Middle East Clashes Flare Up

The precious metal is living up to its safe-haven characteristics after stunned Israel fights off the worst Hamas attack in decades.

• Gold prices XAUUSD rallied with a gap at the opening hour on Monday after investors fled to the safe-haven asset amid ongoing clashes between Israel and Gaza. The precious metal soared 1.2%, from a Friday close of $1,832 to today’s kickoff price of $1,850 and a session high of $1,855 per troy ounce.
• Gold is sensitive to geopolitical tensions and the Middle Eastern on-and-off conflict is particularly impactful to gold’s price levels. As the war unfolds, and many pieces of the jigsaw puzzle shuffle, investors are bound to keep close to the yellow metal as a quick gateway to perceived safety.
• Over to economic news, gold’s upside swing follows a smashing 336,000 increase in the US labor market in September. The figure was double than what most analysts anticipated and it bucked the trend of cooling jobs market conditions. The hotter-than-expected data further complicated the Fed’s next move.