XAU/USD surged on Wednesday, trading around $1,982 per troy ounce. Financial markets are closely monitoring Wall Street's earnings reports while assessing economic prospects ahead of key events scheduled for Thursday.
On one hand, financial markets anticipate substantial growth in the US economy from July to September, projected at an annual rate of 4.2%. Such an optimistic figure might dispel concerns about higher interest rates. However, it could also imply that the Federal Reserve (Fed) might maintain elevated interest rates for a more extended period, as Chairman Jerome Powell stated that the central bank needs to grow below trend to bring inflation back to the 2% target.
On the other hand, the European Central Bank (ECB) is set to announce its monetary policy decision on Thursday. Christine Lagarde and her colleagues are widely anticipated to keep interest rates unchanged and adopt a cautious approach to future monetary policy.
Meanwhile, earnings season is impacting market sentiment. The Nasdaq Composite index experienced a sharp decline due to mixed results from prominent tech giants. S&P500 also traded in the red, while the Dow Jones Industrial Average showed modest gains during the day. Lastly, government bond yields rose, with the 10-year Treasury bond increasing by 7 basis points to hover around 4.91%.
Feel free to let me know if you need further details or if there's anything specific you would like to include!
On one hand, financial markets anticipate substantial growth in the US economy from July to September, projected at an annual rate of 4.2%. Such an optimistic figure might dispel concerns about higher interest rates. However, it could also imply that the Federal Reserve (Fed) might maintain elevated interest rates for a more extended period, as Chairman Jerome Powell stated that the central bank needs to grow below trend to bring inflation back to the 2% target.
On the other hand, the European Central Bank (ECB) is set to announce its monetary policy decision on Thursday. Christine Lagarde and her colleagues are widely anticipated to keep interest rates unchanged and adopt a cautious approach to future monetary policy.
Meanwhile, earnings season is impacting market sentiment. The Nasdaq Composite index experienced a sharp decline due to mixed results from prominent tech giants. S&P500 also traded in the red, while the Dow Jones Industrial Average showed modest gains during the day. Lastly, government bond yields rose, with the 10-year Treasury bond increasing by 7 basis points to hover around 4.91%.
Feel free to let me know if you need further details or if there's anything specific you would like to include!
