PPI

Although gold has gained close to 1.5% over the last 2 trading sessions, this move does not yet appear to confirm a dominant buying bias. For now, the metal continues to show a more neutral behavior, with demand strength still failing to recover fully after the release of PPI inflation data in the United States.

The EUR/USD staged a mild bounce on Tuesday’s morning session after falling relatively sharply along with other FX majors on Monday. The slight recovery was initially likely driven by profit taking on long dollar positions given that the greenback was also weaker against other currencies. We saw a surprising weak PPI report which contributed to the dollar’s small pullback.