On Wednesday (October 30th), in the morning session of the Asian market, spot gold continued its upward trend, with the price of gold just touching a record high of $2779.88 per ounce. Analysts say that the tense situation in the Middle East and the uncertainty of the US presidential election provide upward momentum for gold prices.

The latest news from the Middle East situation is that Israel launched an attack on a residential building in the northern Gaza town of Beit Lahia on Tuesday, resulting in at least 93 Palestinians dead or missing. The United States called it a 'terrible event'.

Bloomberg reported that gold prices reached record levels in early Asian trading on Wednesday, as traders are digesting the latest US economic data and weighing potential market turbulence ahead of the upcoming presidential election.

Bloomberg reported that the market is weighing a report that shows job vacancies in the United States have dropped to their lowest level since early 2021. These data are contrary to the September data, which showed that the job market remained strong, prompting traders to reduce their bets on another significant interest rate cut by the Federal Reserve. Higher borrowing costs are usually unfavorable for precious metals.

On Tuesday, the number of job vacancies in the September Job Openings and Labor Mobility Survey (JOLTS) in the United States fell from 7.86 million last month to 7.44 million, the lowest level in three and a half years, far below the expected 7.99 million. This data indicates that the demand for labor is declining and businesses are waiting for economic acceleration. This is the lowest number of job vacancies since January 2021.

The JOLTS job vacancy report is one of the most important labor indicators for US Treasury Secretary Yellen during her tenure as Chair of the Federal Reserve. This indicator is also a highly monitored labor market data by the Federal Reserve.

Traders will closely monitor more US economic data, including inflation and employment data, to be released later this week before the Federal Reserve's next policy meeting on November 6-7, which may provide clues for the Fed's loose policy trajectory before 2025. Economists predict that the Federal Reserve will cut interest rates by 25 basis points next week.

Due to its non interest bearing nature, gold is more likely to thrive in low interest rate environments and is seen as a means of hedging against market volatility.

In terms of the situation in the Middle East, Reuters reported on Wednesday that the Gaza Ministry of Health stated that Israel launched an attack on a residential building in the northern Gaza town of Beit Lahiya on Tuesday, resulting in at least 93 Palestinians dead or missing and dozens injured. The United States called it a 'terrible event'. Medical staff said that at least 20 children were among the deceased.

The Gaza Ministry of Health stated in a statement that "some of the victims are still buried under rubble and on roads, and emergency and civil defense personnel are unable to reach them." On Tuesday evening, Ismail Al Thawabta, the head of Gaza's media office, said that the death toll had risen to 93.

Reuters reported that there was no immediate comment from the Israeli side. The Israeli military often questions the death toll released by Hamas media offices, claiming that these numbers are often exaggerated.

The video obtained by Reuters shows that several bodies were wrapped in blankets and placed on the ground after a four story building was bombed. People are still rescuing more bodies and survivors from the ruins, and neighbors are also joining the rescue efforts.

Israel's main ally, the United States, has expressed concern over the high number of casualties, with State Department spokesperson Matthew Miller calling it a "terrible event with terrible consequences.

Miller told reporters that US officials have contacted the Israeli government to inquire about what happened. He also said he was aware of reports that many of the deceased were children.

Supported by central bank buying and safe haven demand triggered by conflicts in the Middle East and Ukraine, gold has surged by over one-third this year. The US presidential election is also a focus of investors' attention, and the uncertainty of the election results highlights the role of gold as a safe investment venue for investors.

(Screenshot source: Bloomberg)

According to the polling website FiveThirtyEight, Trump's chances of winning have risen to 52%, while Vice President Harris's chances of winning are 48%. Nevertheless, Harris still leads slightly in most national polls.

Suki Cooper, an analyst at Standard Chartered Plc, said in a report, "In the scenario of Trump's victory, the market is focused on the impact of broader tariffs and the inflationary pressures brought about by such tariffs.