Market Analysis

Gold is rising following Russian invasion

GOLD

Gold prices are rising during early Tuesday trading, after stabilizing during the previous two sessions. Events in Ukraine, following the Russian invasion, continue to dominate the mindset of investors, offering support to safe-haven assets and supporting gold well above the $1,900 mark. After yesterday’s talks between Russian and Ukrainian officials, and the show of cohesion amongst Western allies who deployed a barrage of sanctions on Russia, the mood lifted somewhat, as some hope started to appear regarding the possibility of a reduction in tensions. However, the current lull, that followed the initial shock, is not likely to last as the  financial markets remain on high alert and ready to react to the next batch of news. It appears unlikely that there will be a solution for the conflict anytime soon, with the probability of an escalation in the intensity of the fighting over the next few days, which could create scope for further spikes in gold prices.

Ricardo Evangelista – Senior Analyst, ActivTrades

Source: ActivTrader

 

EUROPEAN SHARES 
Shares edged mostly higher in Europe on Tuesday, as investors’ focus gets back to macro data and earnings while waiting for more development from Eastern Europe.

Benchmarks climbed in early trading, as traders welcomed positive Manufacturing PMI figures from China overnight, and await ECB President Christine Lagarde’s speech for more clues on monetary policy, especially as EU CPI data loom tomorrow. Talking about central banks, the Federal Reserve is also coming back in investors’ minds, as many wonder how it will react to the current geopolitical tensions leading to an energy/commodity crisis, which could drive inflation further up and threaten short- to mid-term growth. That said, the “risk-on” mood seems to be back on track this week despite lingering uncertainties, as investors probably bet on the fact the geopolitical conflict won’t remain for a long period of time.

Pierre Veyret – Technical analyst, ActivTrades

Source: ActivTrader

 

The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.

All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.

Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.