Weekly News Recap 15 – 18 October 2024

News for 15 October 2024

Gold May Form a Double Top

On October 14, gold prices declined, closing at $2,648/oz, due to the U.S. Dollar Index strengthening from 102.91 to 103.21. The stronger dollar put downward pressure on gold prices.

On October 15 at 19:30, the New York Manufacturing Index is set to be released, with a forecast of 3.4.

Currently, gold appears to be forming a Double Top pattern, indicating that the latest rebound was unable to break above the resistance level at $2,675/oz. This suggests a potential weakening trend for gold prices ahead.

U.S. bank stocks show positive momentum despite falling interest rates.

Recently, three major U.S. financial institutions kicked off the earnings season, with JPMorgan Chase shares surging 4.4% after reporting higher-than-expected Q3 profits and raising its annual net interest income forecast.

Wells Fargo shares also rose by 5.6% after announcing profits that exceeded analysts’ expectations.

Additionally, BlackRock shares climbed 3.6% following the report that its assets under management reached record highs for the third consecutive quarter.

News for 16 October 2024

Gold Experiences a Rebound

On October 15, gold prices rebounded, closing at $2,662/oz, driven by the New York manufacturing index, which fell to its lowest level in five months at -11.9. This has led to renewed interest in gold as a safe-haven asset among investors.

It is anticipated that gold prices may move sideways, with support at $2,650/oz and resistance at $2,675/oz.

WTI Crude Oil Plummets 4.40% After Israel Indicates No Plans to Strike Iranian Oil Facilities

WTI crude oil futures for November delivery dropped by $3.25, or 4.40%, closing at $70.58 per barrel, following reports that Israel has no plans to attack Iranian oil facilities. This development has led the market to anticipate a potential decline in oil demand.

The decrease in oil prices has also impacted energy stocks, which closed down 3%, marking the largest single-day decline since early October 2023.

Investors Eye ECB Meeting, Anticipating Another 0.25% Rate Cut

Investors are closely monitoring the upcoming European Central Bank (ECB) monetary policy meeting scheduled for Thursday, October 17. There are expectations that the ECB will decide to reduce interest rates by another 0.25% following recent economic data releases, including unexpectedly low inflation in France and deteriorating economic conditions in the Eurozone.

Goldman Sachs Reports Q3 2024 Earnings and Revenue Exceeding Analysts’ Expectations

Goldman Sachs has announced its Q3 2024 earnings and revenue, surpassing analysts’ forecasts. The bank reported earnings of $8.40 per share, significantly higher than the anticipated $6.89 per share.

Additionally, the bank’s total revenue reached $12.70 billion, exceeding analysts’ expectations of $11.80 billion.

News for 17 October 2024

Gold Prices Surge Strongly Amid Middle East Tensions

On October 16, gold prices saw a robust increase, closing at $2,674 per ounce. This surge was driven by heightened tensions in the Middle East, which have bolstered gold’s appeal as a safe-haven asset for investors.

On October 17 at 7:30 PM, key economic data will be released, including retail sales figures and the number of weekly jobless claims. Analysts expect retail sales to come in at 0.3%, while jobless claims are anticipated to reach 241,000.

The market is expected to closely monitor ongoing tensions in the Middle East as events unfold.

BOJ Should Gradually Raise Interest Rates

Seiji Adachi, a member of the Bank of Japan’s (BOJ) policy board, expressed that the BOJ should implement interest rate hikes gradually without rushing to control inflation at this time. He stated, “I think there is no need to hastily raise interest rates to manage inflation right now… I believe we should avoid a rapid increase in interest rates.”

Gold Prices Expected to Soar! Experts Predict New High of $2,917 by October 2025

A survey revealed a continuous upward trend in global gold prices at the London Bullion Market Association (LBMA) annual conference held in Miami, USA. Gold is predicted to reach a new all-time high of $2,917 per ounce by late October 2025, representing a roughly 10% increase from current levels.

Gold reached its most recent peak in September 2024 at $2,685 per ounce. The primary factor behind this surge is the Federal Reserve’s interest rate cuts, as gold, a non-yielding asset, becomes more attractive in a low-interest-rate environment.

In September, Gold Spot prices set a new record for highest closing prices on eight separate occasions, with the highest closing price of $2,685.42 per ounce recorded on September 26, 2024.

Similarly, Gold Futures also hit new records, with the highest-ever closing price of $2,695.80 per ounce on September 26, 2024, and an intraday high of $2,702.30 per ounce on the same day.

News for 18 October 2024

Gold Rallies Towards Resistance at $2,700/oz

On October 17, gold prices closed at $2,692/oz, primarily driven by concerns over the situation in the Middle East and the upcoming U.S. elections. As a result, gold has seen a steady increase in buying interest as a safe-haven asset.

On October 18, at 7:30 PM, U.S. building permit numbers are expected to be announced, with forecasts at 1.45 million units. Following that, at 11:10 PM, there will be remarks from Waller, a member of the Federal Reserve.

Overall, the outlook for gold prices appears to be on an upward trend during this period.

NVIDIA Shares Reach New Highs Above $140

NVIDIA, a leading technology company known for its powerful graphics processing units (GPUs) and AI chips, has seen its stock reach new heights, surpassing $140.

Over the past year, NVIDIA’s stock has surged by 231.15%, reflecting strong investor confidence in the company’s innovative product offerings. Additionally, NVIDIA has benefited from the positive earnings report of Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest semiconductor manufacturer.

TSMC is expected to report a significant 42% increase in profits for the third quarter, driven primarily by the growing demand for AI chips.

ECB Cuts Interest Rates by 0.25%

On October 17, the European Central Bank (ECB) lowered interest rates by 0.25%, marking the first consecutive cut in 13 years, following a similar reduction in September. This move is expected to boost consumer sentiment.

Nestlé’s stock surged by 2.5% in the market, supported by positive comments from company executives, despite a downward revision in annual sales forecasts. Meanwhile, Rentokil Initial, a UK-based pest control company, saw its shares rise by 8.7% due to plans for expansion into North America, following a steady increase in group revenues.