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Trends & Analysis
News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

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Is there an AI upside for AMD?

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GBP/USD recovers following wage report

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Buy the JPMorgan dip?

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Goldman Sachs shares surge after earnings beat

Trends & Analysis
News

Gold continues to shine amid geopolitical worries

News

Crude oil dips for 3rd session after supply data

News

Is there an AI upside for AMD?

News

GBP/USD recovers following wage report

News

Buy the JPMorgan dip?

News

Goldman Sachs shares surge after earnings beat

News

Gold shines brighter after Powell’s remarks

Friday, October 20, 2023

Today’s headlines

What’s happening: Gold prices recorded gains on Thursday, amid rising geopolitical unrest.

What happened: Prices for the yellow metal closed at their strongest level since late July on Thursday.

The US dollar moved lower following comments from Federal Reserve Chairman Jerome Powell, providing a boost to gold.

Why it matters: In remarks to the Economic Club of New York, Powell said that inflation was “moving down sustainably toward our goal (of 2%).”

Despite inflation remaining at elevated levels, traders widely expect the Federal Reserve to keep interest rates unchanged at its November meeting. There are growing speculations, however, about the US central bank hiking rates in December.

Weakness in the US dollar lent support to gold prices, as a lower greenback generally makes commodities and metals cheaper for foreign currency holders. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell around 0.3% to 106.25 on Thursday.

Gold for December delivery gained $12.20, or 0.6%, to close at $1,980.50 an ounce on Comex. Gold futures fell as low as $1,963.80 amid comments from Powell but recovered sharply later in the session.

The safe-haven metal closed at its highest level since July 31, when prices settled above $2,000.

Gold futures are on course to recording gains for the second week in a row, following losses for three straight weeks. Gold futures continued their rally, moving towards the key $2,000 resistance level this morning.

Silver for December delivery declined 7 cents to close at $23.103 an ounce, while December copper added 1 cent to $3.60 a pound on Thursday.

What to watch: Investors will continue monitoring US Treasury yields, which could significantly impact gold prices ahead. Geopolitical unrest and comments from Fed officials will also remain in focus.

The markets today

Intuitive Surgical will be in focus today after releasing results for the third quarter

Context: Shares of Intuitive Surgical fell during the extended trading hours on Thursday, after the company reported mixed financial results for the third quarter.

Details: Growth in procedures is a major metric for the robotic surgery behemoth. Increase in the number of procedures provides a boost to the sales of instruments and accessories required to perform surgery. Sales of instruments and accessories jumped 23% to $1.07 billion during the quarter, topping market estimates for $1.06 billion.

Intuitive Surgical’s quarterly earnings grew by 22.7% to $1.46 per share, topping the consensus estimates of $1.41 per share. Sales rose around 12% to $1.74 billion, missing Wall Street expectations of $1.77 billion.

The company closed the quarter with cash and equivalents worth $7.52 billion, a rise of $389 million versus the previous quarter, driven by cash generated from operations.

The company shipped 312 da Vinci Surgical Systems, higher than the 305 figure reported in the year-ago quarter.

How shares responded: Intuitive Surgical’s shares declined by 8.2% to $251.00 in the after-hours session, following the release of quarterly results. The stock has lost around 6% over the past month.

What to watch: Investors will continue assessing procedure growth, which is an important figure for the company to achieve overall sales growth.

Other Markets: European indices closed lower on Thursday, with the FTSE 100, DAX 40, CAC 40 and STOXX Europe 600 Index down by 1.17%, 0.33%, 0.64% and 1.19%, respectively.

The news shaping the markets

China’s President Xi Jinping and Russia’s President Vladimir Putin held bilateral talks. Xi commented that “political mutual trust” between the two nations was deepening. The news sent the safe-haven US dollar index slightly higher this morning.


Japan’s National core consumer price index inflation increased to 2.8% year-over-year in September, higher than market estimates of 2.7%, which exerted pressure on the JPY/USD forex pair.


China held its benchmark lending rates unchanged at its latest meeting, sending the CNY/USD pair lower in forex trading this morning.


Canada’s industrial producer prices rose by 0.4% in September, better than market estimates of a 0.3% gain. The figure being much lower than the 1.9% hike reported in August lent support to the CAD/USD forex pair.


US existing home sales fell by 2% to a seasonally adjusted annualised rate of 3.96 million units in September. This being the lowest figure since October 2010 sent US stocks lower by around 1%.

What else to watch today

Italy’s car registrations, Germany’s PPI and car registrations, UK’s retail sales, public sector net borrowing and car registrations, France’s car registrations, Belgium’s consumer confidence, Greek current account, China’s FDI, India’s bank loan growth, deposit growth, FX reserves and RBI MPC meeting minutes, Brazil’s IBC-Br economic activity, Canada’s retail sales, as well as US Baker Hughes oil rig count and Federal budget balance.


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