Market Drivers, US Session, Oct. 1

Gold prices have rallied over 1% on Tuesday amid growing tensions in the Middle East. The XAU/USD trades at $2,662 after bouncing off daily lows of $2,632. A daily close below the September 30 high of $2,665 could open the door for a pullback if geopolitical risks de-escalate.

The US Dollar Index (DXY) surpassed the key 101.00 barrier amidst increasing safe haven demand in response to geopolitical concerns. The ADP Employment Change takes centre stage seconded by the weekly Mortgage Applications tracked by MBA and the EIA’s report on US crude oil inventories. In addition, the Fed’s Barkin, Bostic, Hammack, Musalem, and Bowman are all due to speak.

EUR/USD plummeted to two-week lows near 1.1040 following the stronger US Dollar and the prevailing risk-off sentiment. The Unemployment Rate in the euro area will be published along with speeches by the ECB’s De Guindos, Buch, Elderson, and Schnabel.In line with its risk-associated peers, GBP/USD tumbled to multi-day lows and revisited the 1.3240-1/3230 band on Tuesday.

The next key data release in the UK will be the final S&P Global Services PMI on October 3.USD/JPY rose marginally amidst a volatile session, which saw the Greenback pick up extra pace and global yields retreat further.

The September’s Consumer Confidence gauge is due.AUD/USD reversed three consecutive daily advances and revisited the 0.6860 zone following the stronger Dollar and the offered stance in the risk complex.

WTI crude oil prices advanced to fresh highs around the $72.00 mark per barrel following Iran’s attack on Israel.