Gold price headed for a third straight monthly gain and in this quarter gold is up more than 12% in global markets. During the previous week, the yellow metal gained almost 1.4%, driving investors toward the safe-haven metal. The gold price surged to 8 – year high this month as demand for the safe-haven asset was boosted by worries over a surge in Covid-19 infections and the price also supported by intensified tensions between the US and China, over the China-India border clash.
Asian stocks climbed higher on Tuesday after better-than-expected manufacturing PMI data from China. China’s official manufacturing PMI unexpectedly rose to 50.9 in June from 50.6 in May, beating estimates pointing to a reading of 50.4. On Monday, Wall Street ended higher supported by the strong US pending home sales report.
Crude oil prices slipped on Tuesday, amid concerns over a second wave of coronavirus following easing lockdown restrictions in more countries.
The Australian dollar retreat from the earlier gains, the currency pair rose to a fresh day of 0.6885 during the Asian session after strong China PMI data. GBP/USD relatively unchanged during the European session after the British economy witnessed the largest drop in GDP since the third quarter of 1979.
The yellow metal trading steady above $1770 on Tuesday, moving ahead to the North American session the gold traders will closely monitor the speech by Fed Chairman Jerome Powell in the US Congress.
On the data front, The UK economy recorded its largest contraction in more than four decades, official figures revealed on Tuesday. The Office for National Statistics said gross domestic product dropped by a quarterly 2.2 per cent in the first three months of 2020. Meantime, Switzerland's retail sales surged 6.6 per cent from a year earlier in May 2020, the sharpest increase since September 2008.
Moving ahead today, the important events to watch:
CANADA Gross Domestic Product – 12.30 GMT
US Consumer confidence– 14.00 GMT
US FED chair Powell testimony - 16.30 GMT
The number of people infected with COVID-19 across the world crossed 10.3 million, of which around 505 thousand have died, according to Johns Hopkins. The United States is the worst-affected country, with more than 2.59 million diagnosed cases and at least 125,768 deaths. Africa's confirmed cases of COVID-19 continued to climb to a new high of more than 371,000, including 9,484 deaths.
DOLLAR INDEX: The greenback recovered from the previous session losses, at the time writing $DXY hovers around last week high the 97.75.
The important levels to watch for today: Support- 97.40 and 97.00 Resistance- 97.80 and 98.35.
EUR/USD: The currency pair edged lower on Tuesday and trading above 1.1200 during the European session.
The important levels to watch for today: Support- 1.1180 and 1.1140 Resistance- 1.1290 and 1.1320.
Quote of the day: Remember, your goal is to trade well, not to trade often- Alexander Elder.