Middle East Conflict No Solution, Gold 'Bullish'!

<p>&nbsp;Today, the price of gold is seen rising at around the $2,040 level at the opening of the early trading session.</p><p><br /></p><p>The US dollar, which was still stable in the European session yesterday, made it difficult for gold to continue rising in the European session, but the situation changed in the following session, which saw the price jump from the $2,025 level.</p><p><br /></p><p>Continued expectations for the Federal Reserve (Fed) to cut rates in 2023 continue to support gold prices to remain 'bullish'.</p><p><br /></p><p>However, the escalating geopolitical tensions in the Middle East became the main problem in this week's market movements. The Red Sea has become a hot topic in the eyes of investors and traders following reports of attacks by Yemen's Houthi group.</p><p><br /></p><p>Indirectly, this gives the gold market an opportunity to continue to move up if the conflict and tension in the Middle East continues.</p><p><br /></p><p><br /></p><p>In addition, the weakening value of the US dollar also affects the price of gold. The Fed official's previously dovish speech increased the expectations of market participants regarding the amount of interest rate cuts in 2024.</p><p><br /></p><p>Policymaker Barkin showed a worried reaction to the speech delivered by The Fed, he believes that the inflation rate will continue to rise in the future.</p><p><br /></p><p>Meanwhile, US treasury yield also showed positive sentiment today for the 2 and 10 year yields which gave an advantage to gold prices.</p><p><br /></p><p>This week, traders will be ready to watch the important data of the US PCE economy this Friday. This information will determine expectations for US interest rates towards the end of the year pending the report of the annual third quarter GDP figures.</p><p><br /></p><p>In addition, high-impact economic data such as the CB consumer confidence survey and Michigan consumer sentiment also received attention although the impact was not significant. Any shifts and changes in the report are likely to be reversed by the end of the trading session.</p><p><br /></p><p>The state of the gold market that closed last week has shown an uncertain movement and traders are predicting an increase in prices. Now, that expectation is correct and the price continues to hover at the level of $2,040 before it is expected to continue its climb to the next level, $2,050.</p>