Gold price recaptures monthly high after Gaza hospital explosion

• Gold price aims to extend upside as Israel-Palestine conflict deepens.

• The US Dollar consolidates, shrugging off robust US Retail Sales data for September.

• 10-year US Treasury yields rose to 4.85% on rising expectations of one more interest rate increase from the Fed.

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Gold price (XAU/USD) extends its upside move as investors’ appeal for precious metals remains upbeat due to the deepening crisis in the Middle East. The precious metal delivered a breakout of the consolidation formed in a range of $1,909-$1,932 despite the fact that robust US Retail Sales data elevated expectations of one more interest rate hike from the Federal Reserve (Fed) for the remainder of 2023.

Demand for bullion rose significantly due to the escalating conflict between Israel and Palestine after the strike at a Gaza hospital. The hospital blast in Gaza resulted in hundreds of casualties, which has created room for an intervention by Iran. Earlier, Iran warned of a possible intervention if Israel appears for a ground assault. Meanwhile, US President Joe Bide remained 'loud and clear' that the US stands with Israel.