U.S. stock indexes closed mixed on Tuesday as companies warned of a difficult year ahead and some profits exceeded expectations. Additionally, data showed that U.S. business activity contracted for the seventh consecutive month in January.

Globally, stocks have performed well this year after a difficult 2022, due to the belief that inflation is nearing its peak and the increase in U.S. interest rates will slow down. The lifting of COVID-19 controls in China and the reopening of its borders have also contributed to a positive sentiment among investors.

On Wednesday, gold prices traded in a narrow range between $1925 and $1935 as investors refrained from making significant investments ahead of the release of U.S. economic growth data this week. The expectation of slower interest rate hikes from the Federal Reserve also supported the positive outlook for gold. Lower interest rates can lead to lower returns on interest-bearing assets such as government bonds, which may make zero-yield gold a more attractive option for investors.

In the oil market, U.S. West Texas Intermediate (WTI) crude increased by 13 cents, or 0.2%, to $80.26 per barrel, following a 1.8% decline on Tuesday. The optimism for demand recovery in China and the likelihood of unchanged output cuts by major oil producers offset concerns about a global recession.

In Europe, stronger-than-expected economic data has alleviated concerns of a severe recession in the euro zone as energy prices decrease. However, interest rates are still expected to rise. The euro remained close to a nine-month peak against the dollar, as traders were encouraged by a more optimistic growth outlook for the euro zone compared to signs of an impending recession in the United States.