2023.10.1810:21:00UTC+00Gold Prices Jump Amid Middle East Turmoil

Gold prices hit one-month high on Wednesday amid safe-haven demand after a huge explosion at a Gaza hospital derailed the diplomatic efforts led by the U.S. to mobilize support for "Israel's right to defend itself".

Spot gold jumped 1.1 percent to $1,944.54 per ounce, while U.S. gold futures were up 1.1 percent at $1,957.15.

Palestinian and Israeli officials have blamed on each other for the blast, further stoking tensions.

After news of the explosion broke late on Tuesday, Jordan cancelled the summit that King Abdullah had planned to host for U.S. President Joe Biden, Egyptian president Abdel Fattah al-Sisi and Palestinian Authority president Mahmoud Abbas.

The escalation of violence along Israel's border with Lebanon has also raised concerns of a wider regional conflict that diplomats are trying to prevent.

The U.S. dollar was relatively stable in European trade despite encouraging retail sales and industrial production data released on Tuesday.

Traders now await speeches by several Fed policymakers, including Chair Powell on Thursday, for additional clues on interest rates.