On Wednesday (October 2nd) in the Asian market, spot gold prices remained around $2660, with overnight gold prices briefly rising to $2673. Due to Iran launching 200 missiles at Israel, the White House has classified this attack as a major escalation. Iran claims that it did not issue a warning to the United States in advance and that the US and Israeli military are in talks about the next steps. Technical analysis warns that the downside risk of gold prices still exists, despite the favorable momentum of RSI for buyers.

Commander of Iran's Islamic Revolutionary Guard Corps, Salami, stated that during the operation on Tuesday evening local time, Iran launched 200 missiles at Israel.

White House National Security Advisor Jack Sullivan called Iran's missile attacks a "significant escalation," but he said Iran's missile attacks were ultimately "defeated and ineffective," partly because the US military assisted in shooting down some incoming missiles.

Sullivan emphasized that this attack will have consequences, and the United States is currently in consultations with Israel on next steps or possible responses.

Renowned financial blog ZeroHedge reported that Iran has stated that its actions have ended "unless the Israeli regime decides to take further retaliation".

(Source: ZeroHedge)

Israeli Prime Minister Netanyahu stated that Iran has made a major mistake and will pay the price for it.

This series of launches is the largest missile attack by Iran on Israel in its history.

The Iranian Revolutionary Guard Corps claims that 90% of its missiles have successfully hit targets within Israel.

It has been confirmed that there has been an attack on the ground, but there have been no official reports of casualties.

The Israeli emergency authorities have lifted all restrictions, and Tel Aviv residents have stepped out of their air raid shelters and returned to the streets.

Iranian state television stated that the attack used Fateh hypersonic missiles.

The Iranian President has stated that he does not want war, but will resolutely face any threat from Israel.

Iran claims that it did not issue a warning to the United States in advance, but did engage in consultations with Russia.

The Israeli Defense Forces have vowed to carry out a "strong strike" on Middle Eastern targets. A spokesperson for the Israeli Defense Forces said, "Iran has taken serious actions and escalated the situation in the Middle East. We will take action at the location and time we choose based on guidance from higher ups

The Iranian attack will have an impact, "said an Israeli Defense Forces source

Iran backed Iraqi militia groups have stated that if the United States participates in any hostile actions, US bases will be attacked.

The United Nations Secretary General condemned the "escalation of the Middle East conflict" but did not mention Iran.

US Secretary of State Antony Blinken said that Iran's missile attack on Israel was "unacceptable" and the world should condemn it.

The United States has stated that it is ready to defend Israel, and Biden has ordered US military assets to counter any further incoming missiles.

At least two missile destroyers in the Eastern Mediterranean have launched interception missiles at incoming Iranian missiles. The US Department of Defense stated that approximately a dozen interceptor missiles were launched.

At present, the US Department of Defense refuses to disclose whether the US will join future kinetic strikes against Iran.

Kitco analyst Jim Wyckoff wrote, "If Iran attacks Israel, gold prices are likely to hit a new high, and silver prices could also hit a new high

The US Department of Labor announced that the August Job Openings and Labor Mobility Survey (JOLTS) increased from 7.711 million to 8.04 million, exceeding the expected 7.655 million.

The ISM manufacturing PMI remained stable at 47.2 in September, the same as the previous value, but lower than the expected 47.5.

Market participants believe that the likelihood of a 25 basis point rate cut is 61.6%, while according to the Chicago Mercantile Exchange's (CME) Fed Watch tool, the likelihood of a 50 basis point rate cut has dropped to 38.4%.

Analysis of Gold Technology

Analyst Christian Borjon Valencia said that the escalation of the Middle East conflict could pave the way for a rise in gold prices, although the momentum shown by the Relative Strength Index (RSI) is favorable to buyers, downside risks still exist.

If gold breaks through its historical high of $2685, it may continue its upward trend to $2700. On the contrary, if the gold price falls below $2650, it may test the daily high of $2600 on September 18th.

Once it falls below, the next support level will be the September 18th low of $2546, followed by the 50 day simple moving average (SMA) at $2503.