Nvidia's ongoing success: gains keep rolling in

Nvidia to unveil second quarter earnings

By Laila Eid | @Laila Eid | 22 August 2023

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  • Gold reaches $1900 per ounce level

  • Dollar index holds steady around 103.50

  • U.S. indices on the rise

Nvidia gains ahead of earnings report

In today's trading session, U.S. indices showed strength, with the Nasdaq index notably leading for the second time this week. The market's attention has turned to major technology firms, setting a positive tone.

One prominent gainer is Nvidia, with its shares rising over 1%. The company is poised to unveil its second-quarter earnings report after Wednesday's market close. Nvidia's substantial growth in 2023 is attributed to its production and sale of graphics processing units (GPUs), pivotal in running AI-backed chatbots like ChatGPT, which has gained significant attention in the past year.

Gold resumes uptrend amidst various influences

Gold has resumed its upward trajectory after reaching its lowest point since March 2023. The precious metal has surged, moving closer to the $1900 threshold and has maintained this position in today's trading. Several factors have played a direct role in shaping these recent price fluctuations.

During today's trading session, the US dollar index stabilizing around the 103.50 level. It's noteworthy that the US dollar has demonstrated positive performance over the past period, reaching its highest level in five weeks. Conversely, US bond yields saw an increase yesterday, with the ten-year bond yields hitting a 16-year high. This increase indicates a corresponding decrease in bond prices. Furthermore, the thirty-year bond yields have remained stable, hovering around approximately 4,450%.

Market participants are also eagerly anticipating a speech by US Federal Reserve Governor Jerome Powell towards the end of the week. This address is expected to hold significant implications for the future direction of the US Federal Reserve's monetary policy. Powell is anticipated to convey that the Federal Reserve is committed to tackling inflation, indicating a gradual reduction in monetary stimulus. It is worth noting that Powell's tone has shifted from the previous meeting, where he had adopted a more hawkish stance, hinting at the potential for further monetary tightening.