General Market Analysis – 23/10/24

US Markets Consolidate Ahead of Earnings – Nasdaq up 0.2%

US stock markets consolidated near recent highs as investors await key earnings reports this week. The Nasdaq made a late move to finish in positive territory, closing up 0.18% on the day, while the Dow and S&P remained flat, losing 0.02% and 0.05%, respectively. US Treasury yields continued their upward trend, with the 2-year rising by one basis point to 4.035%, and the 10-year gaining 2.2 basis points, closing at 4.204%. Meanwhile, the dollar edged higher, reaching a 10-week high against a basket of currencies, trading at 104.04 on the index. Oil prices surged once again, driven by concerns over the ongoing conflict in the Middle East. Brent and WTI both gained 2.2%, closing at $75.90 and $72.10, respectively. Gold remained a standout performer, gaining another 0.9% to reach a record level, closing the day at $2,746.69.

Stars Align for Gold Bulls

Gold surged to yet another fresh high in trading yesterday, having now risen over 33% this year, with some analysts predicting further gains into 2025. Gold, traditionally considered one of the safest haven assets, is benefiting from an almost perfect trading environment for bulls. Geopolitical concerns have been front and centre for investors throughout the year, with markets moving from one flashpoint to another on a near-monthly basis. Uncertainty surrounding the upcoming US election is also likely being priced into the metal, with Kamala Harris now holding a slight lead in some polls. As the race remains tight, traders are anticipating further potential gains in the weeks and months ahead.

Bank of Canada in Focus Today

It has been a relatively quiet week on the macroeconomic front, but that could change later today with the Bank of Canada set to announce its latest rate decision. There is little on the agenda during the Asian session, but emerging market traders will be keeping an eye on updates from the BRICS summit as day two unfolds. The action is expected to pick up once New York opens, with a 25-basis point rate cut anticipated from the Bank of Canada. Volatility is expected around the event, with the accompanying statement and press conference likely to provide further forward guidance. Additionally, tier 2 US data, including Existing Home Sales and Oil Inventory figures, will be released. Several central bank speakers, including ECB President Christine Lagarde and the RBNZ’s Adrian Orr, are also scheduled to speak.

The post General Market Analysis – 23/10/24 first appeared on IC Markets | Official Blog.