The US Producer Price Index report for April and the speech of Fed Chairman Jerome Powell will be the main drivers of the markets on Tuesday. Today,

a few hours after the US economy, we are waiting for the producer price index, which is expected to be released better than expected and rise to 2.2% year-on-year, while the core producer price index is expected to show an increase of 2.4% year-on-year in the same period, but the precious metal is trading on highs on Tuesday.

Any signs that inflation is sticky may reduce expectations of a cut in US interest rates this year, which could put pressure on the yellow metal and pull gold back again.

Investors will be closely watching the main US economic data this week such as the US producer price index along with the speech of Fed Chairman Jerome Powell today, Tuesday, attention will also turn to the US Consumer Price Index (CPI) due to be released tomorrow, Wednesday and is considered the most important data this week, as these reports can provide a look at the timing of the initial interest rate adjustment by the Fed. Hotter-than-expected inflation figures may weaken the likelihood of an interest rate cut from the Fed affecting the precious metal, and therefore high interest rates may reduce investment demand for gold as they increase the opportunity cost associated with holding gold.

And vice versa if inflation starts to decline.

Technically:

gold is trying to rise on the four-hour frame to complete compatible harmonic models at the levels of 2400 dollars and around.

As we mentioned in the last analysis here that the yellow metal is a candidate for a rebound from the levels of 2333 dollars upwards as long as we trade above this cluster area to target the levels of 2365 and then 2400 dollars per ounce.

If this zone is broken with the uptrend levels, gold will be a candidate for pullbacks to target the levels of 2310 and then 2285 dollars per ounce.