Gold experienced a corrective phase last week, retracing from its bullish move and declining from 2375 to 2335. Today, traders are focusing on key zones at 2350 and 2330, with a cautious approach to buying only when the candle closes above 2347-2350. A close above this zone may signal a retest of the crucial 2364 level.
Tuesday's market events hold significance for traders -
In the eurozone, attention is on the outcomes of the German ZEW survey, where any positive surprises could lead to higher yields amid ongoing concerns over Germany's economic performance impacting eurozone growth. Additionally, UK weekly earnings data will be monitored by the Bank of England, potentially influencing interest rates.
In the US, core Producer Price Index (PPI) data is expected to remain unchanged at 0.2% month-on-month, although some forecasts suggest a possible increase to 0.3%, reflecting upticks in the price components of the ISMs. The NFIB's small business optimism index and its employment component will also be watched closely.
Federal Reserve Chair Powell is scheduled to speak alongside the ECB's Knot, with ECB's Schnabel also delivering a speech on "setting the course for competitiveness and growth". These speeches could provide insights into central bank policy directions and market sentiment.
Issuance activity includes a new 30-year bond syndication by the EU, estimated to raise €7-8 billion, and a syndication by Italy for new 12-year green BTPs expected to raise €6 billion. Additionally, the Netherlands, Germany, and the UK are set to auction various bonds, contributing to market liquidity and potential price movements.
In summary, gold traders are advised to remain vigilant amidst key market events, with a keen eye on technical levels and fundamental developments shaping trading decisions on Tuesday.