GOLD
Gold prices dipped in early Tuesday trading, with market focus turning to this week's impending Fed meeting and rate decision. Geopolitical instability has been a primary driver of gold's value, spurred by heightened haven demand. This surge saw bullion prices climb nearly 20% in the past two months, peaking at an all-time high of $2,431. However, as reports surface of peace talks between Israel and Hamas, reducing prospects of regional conflict escalation, trader attention shifts to the Federal Reserve and its forthcoming monetary policy announcement. The decline in gold prices mirrors concerns that Jerome Powell, grappling with persistent inflation and a robust US economy, may adopt a more hawkish stance, delaying expectations for a rate cut until the fourth quarter of the year or even as far as 2025. Such a scenario could spur dollar appreciation and higher treasury yields, posing a negative outlook for gold prices.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
European shares traded sideways on Tuesday as market sentiment remains uncertain following uneven macro data from China, ahead of more corporate results today. The macro agenda will be busy today, with most eyes on GDP and CPI data from Eurozone countries, following the mixed PMI publications from China overnight.
On the corporate front, traders await results from Amazon, AMD, Samsung, HSBC, Hermes, and Sanofi, which are due later today. Investors, torn between monetary uncertainties and a solid earnings season so far, have a lot on their plate. Even if the overall environment remains somewhat supportive of equity markets, the development of many different market drivers simultaneously makes us expect volatility to remain high over the next few trading sessions.
The chart of the STOXX-50 index clearly shows this uncertainty as the market still trades inside a 135-point wide range, with sharp price action. The market trades below 5,000.0pts, currently weighed down by carmakers and insurers, with a lack of momentum, highlighting the fact that investors may be waiting for a significant breakthrough from the monetary front.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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