24K99 News On Tuesday (October 8), during the early Asian market session, the gold and crude oil markets suddenly experienced volatility. There were rumors of Israeli airstrikes on Iran, causing spot gold to briefly approach $2650 per ounce, and WTI crude oil also rapidly rose by 1%.

During the early Asian trading session, on the social media platform 'Telegram,' there was news of Israeli airstrikes on Iran. Influenced by this news, spot gold surged sharply from around $2641 per ounce to a short-term high of $2649.13 per ounce.

However, according to verification, as of now, there is no mainstream media or reliable source confirming this. Shortly after, the increase in the price of gold was erased, and the price fell back to around $2643 per ounce.

(Spot gold 5-minute chart Source: 24K99)

WTI crude oil futures also briefly surpassed $78 per barrel, then quickly fell back to around $77 per barrel.

(WTI crude oil futures 5-minute chart Source: 24K99)

FXStreet analyst Christian Borjon Valencia pointed out that during Monday's North American trading session, gold prices edged lower but remained within the range of 2630-2659 USD/ounce. The reason is that the increase in US Treasury yields has limited the rise in gold prices, while the escalation of the conflict in the Middle East has prevented gold prices from further decline.

Valencia noted that market sentiment has deteriorated due to the war in the Middle East. Israel continues to conduct ground operations in Lebanon, while Hamas has fired rockets at Tel Aviv, resulting in prolonged clashes. As the conflict escalates, other organizations, including Houthi militants, have attacked ships in the Red Sea, shattering hopes for a ceasefire.

Meanwhile, the latest US non-farm payroll report for September has triggered a surge in US Treasury yields.

According to cme's 'FedWatch Tool,' the probability of a 25 basis point rate cut by the Fed in November is 83.5%. At the same time, the likelihood of a 50 basis point rate cut is 0%, but the probability of keeping rates unchanged has risen to 16.5%.

How to trade gold?

Valencia pointed out that the price of gold is still within the trading range, while Relative Strength Index(RSIIt shows that despite the bullish signal, the gold price is still falling.

Valencia said that if the gold price falls below the September 30th low of $2624 per ounce, it may fall back to the $2600 per ounce level. If it continues to weaken, the next support will be the 50-daySimple Moving Average(SMA) $2531 per ounce.

(Spot gold daily chart source: FXStreet)

Valencia added that on the other hand, if the gold price closes above $2650 per ounce, then the gold price needs to break through $2670 per ounce to challenge the year-to-date high of $2685 per ounce. After that, the gold price will target the key level of $2700 per ounce.