Yields, dollar dip, Dow hits record after US inflation data

US Dollar Index Daily Chart
USA 30 ( Mini Dow Jones ) Daily Chart

Treasury yields and the dollar fell while the Dow registered a record closing high as a subdued U.S. inflation report lifted expectations of an outsized interest rate cut at the Federal Reserve’s November policy meeting. A global stock index also reached a record high, helped by China’s stimulus boost, and European shares posted an all-time high close.

The Federal Reserve is likelier than not to deliver a second 50-basis-point interest rate cut in November, traders expect, after a government report showed U.S. inflation has cooled to a pace nearer to the central bank’s 2% goal.

China’s central bank pauses gold purchases for a fourth month in August

China’s central bank held back on buying gold for its reserves for a fourth straight month in August. China’s gold holdings stood at 72.8 million fine troy ounces at the end of last month. The value of the gold reserves, however, rose to $182.98 billion compared with $176.64 billion at the end of July.

The Gold-Dollar pair traded sideways in the last session. The Ultimate Oscillator is giving a positive signal.
XAU/USD remained largely unchanged in the last session.
The Ultimate Oscillator is currently in the positive zone.
Support: 2481.4331 | Resistance: 2540.9931

China FX reserves rise for second straight month

USD/CNH Daily Chart

Uncertainty over the U.S. economy’s health is rippling through markets, adding fuel to an already-volatile period that has investors grappling with a shift in Federal Reserve policy, a tight U.S. election and worries over stretched valuations. U.S. stocks tumbled after closely watched jobs data showed labor market momentum slowing more than expected

Nvidia, chip stocks waver after previous day’s sell-off

Nvidia’s shares recouped earlier losses to trade higher, propping up chip firms after a bruising sell-off in the prior session, in a sign that AI optimism on Wall Street held out despite concerns around the stocks’ lofty valuations.

The last session saw Nvidia’s stock gain 0.7%. The Stochastic indicator is giving a negative signal.
Support: 104.79 | Resistance: 119.42