2023.10.1310:13:00UTC+00Gold Scales Two-week High On China Data, Middle East Tensions

Gold prices scaled two-week highs on Friday amid fears of a global slowdown and heightened geopolitical risks.

Spot gold rose about 1 percent to $1,887.53 per ounce while U.S. gold futures were up 0.9 percent at $1,900.55.

The dollar and Treasury yields fell slightly after climbing overnight on the back of stronger-than-expected U.S. inflation data.

At the moment, it appears that the reading is unlikely to sway the Fed in its decision-making ahead of its next policy meeting in November.

Meanwhile, new data from China added to jitters about the global economy.

China's exports and imports shrank at a slower pace for a second month in September, while consumer inflation remained flat in the month, separate reports showed earlier today.

The producer price index fell 2.5 percent from a year earlier after a 3 percent drop in August.

Elsewhere, the conflict in the Middle East looks set to escalate after Israel's military today called for all civilians of Gaza City, more than 1 million people, to relocate south within 24 hours.

The Israeli military said it would operate "significantly" in Gaza City in the coming days and civilians would only be able to return when another announcement was made.