Gold Glitters as TSMC and Oracle Lift Market Sentiment Amid Fed Cut Hopes

Global markets maintained a positive tone midweek as a blend of strong corporate earnings, dovish central bank expectations, and resilient commodity prices supported investor sentiment. Gold prices extended their rally above $4,200 per ounce, while TSMC’s record-breaking earnings and Oracle’s upbeat AI strategy added momentum to tech stocks. Despite lingering geopolitical tensions and uneven economic signals from Europe, optimism around global growth and easing inflation pressures is keeping risk appetite alive.

Gold Extends Record Rally Above $4,200

Gold continued its historic surge, climbing past $4,200 per ounce amid mounting expectations of Federal Reserve rate cuts and persistent U.S.–China trade tensions. Investors are increasingly viewing gold as the preferred hedge against both inflation and currency fluctuations, with analysts predicting the rally could extend if upcoming U.S. data confirms slower economic momentum. Silver and platinum also posted gains, reinforcing strength across the precious metals complex.

TSMC Earnings Fuel AI-Driven Optimism

Chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) reported record Q3 profits, up nearly 30% year-on-year, driven by soaring demand for AI chips. The company dismissed concerns over weakening China orders, instead emphasizing strong momentum from global clients like Nvidia and AMD. The upbeat outlook lifted the Nikkei and broader Asia tech indexes, helping stabilize sentiment across regional markets.

Oracle Strengthens AI Footing

Oracle’s analyst meeting bolstered investor confidence as the company outlined an ambitious AI-first cloud infrastructure strategy, sending its shares up over 1.5%. Analysts noted Oracle’s “full-stack AI approach” integrating data, cloud, and machine learning positions as a key player alongside major hyperscalers. The move signals a new phase of enterprise AI monetization, boosting optimism for the sector heading into Q4.

Europe Mixed as Earnings Drive Divergence

European equities traded mixed, with Sartorius AG surging over 11% after raising its full-year guidance, while VAT Group and Pernod Ricard slipped on weaker outlooks. Political uncertainty in France and modest UK GDP growth weighed slightly on regional sentiment. Meanwhile, the euro held steady and oil prices rose over 1%, supported by improved demand expectations and easing supply concerns.

Asia Stocks Steady; FX Shows Caution

Across Asia, markets were mostly positive as Australia’s ASX 200 hit record highs amid growing rate-cut bets, while Japan’s Nikkei 225 gained 1.3% on semiconductor optimism. Asian currencies strengthened modestly, with the yen and won both firming as the U.S. dollar eased on softer inflation data.

Crypto Slips as Traders Lock in Profits

After a volatile week, Bitcoin hovered near $111,000 and Ethereum slipped 2.7%, as traders booked profits following recent gains. While risk sentiment improved in equities, the digital asset space faced mild corrections as investors awaited clearer U.S. regulatory cues.

Summary

At SGFX, we believe this phase reflects measured optimism in global markets. The combination of Fed easing expectations, strong corporate performance, and AI-driven growth momentum suggests a balanced risk environment. However, traders should remain alert to geopolitical triggers and inflation surprises. A diversified strategy blending commodities like gold with high-potential equities and currency trades remains key to capitalizing on market volatility through year-end.