GOLD
Gold prices edged down in early Tuesday trading, finding support above the $2,300 level and remaining close to where they have been over the last two weeks. The bullion price continues to be influenced primarily by US interest rate expectations, and the stability in recent sessions reflects the lack of strong indications regarding the Federal Reserve’s monetary policy for the second half of the year. May’s inflation reading showed an easing in consumer price increases, but a stronger-than-expected PMI reading highlighted the resilience of the US economy, suggesting that higher interest rates for a longer period are still a possibility for the Fed. In this context, Friday’s release of PCE data, considered the Fed’s preferred inflation gauge, could shake the markets and potentially cause gold prices to break out of their recent range.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
European shares declined on Tuesday, following a mixed trading session in Asia, as investors struggle with the current blurry economic and political outlook in many regions.
Turbulence brought by the current monetary and political uncertainties in the US and Europe, combined with the fact that we are now getting closer to quarter-end ahead of the summer season, provides investors with the best opportunity to rebalance their portfolios.
This phenomenon can be seen across all sectors, especially in the tech sector as investors tend to take some profits out of well performing shares as uncertainty rises. The STOXX-50 index is still tradeing inside its short-term bullish channel, above the 4,900pts mark.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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