Precious Metals Shine as Traders Eye Fed

Hello traders, let’s see what Tuesday has in store.

We’re coming off a surprisingly active Monday for what is usually a quiet start to the week. Data from China set the tone early, with both industrial production and retail sales coming in below expectations. Later, the Empire State Manufacturing Index in the US added to the gloom, plunging to –8.7 versus the 4.3 expected. Tuesday’s calendar has already brought us a disappointing UK claimant count change, though the British pound has so far proven resilient, shrugging off the weaker print.

The real spotlight today falls on Canada, where CPI data is due and expected to flatline at 0% month-on-month. Later, we’ll also get US retail sales, forecast to slow to 0.2%. Still, traders across markets have their eyes firmly on Wednesday’s FOMC decision — the key event of the week — and are gradually positioning ahead of it.

On the markets, the mood is generally risk-on. American indices continue to shine, with the S&P 500 and NASDAQ sitting near long-term highs. European equities, true to form, are lagging behind but still showing signs of bullish momentum. On the currency side, commodity dollars are under pressure — the AUD, NZD, CAD, and even the USD itself are weaker — while the yen and European currencies take the lead. In commodities, oil remains choppy but is pushing higher, while precious metals are the stars of the show: silver has hit long-term highs, and gold is trading firmly in bullish territory. Buyers in the metals space have plenty to cheer about as we head into the European open.

So, that’s the lay of the land on Tuesday morning — cautious optimism in equities, weakness in commodity currencies, and strength in precious metals as traders prepare for the big FOMC decision tomorrow.

Source: https://www.axiory.com/analytics/market-news/precious-metals-shine-as-traders-eye-fed