Gold rallies towards 2020, EU GDP growth in focus

Gold is once again catching a bid as commodities are experiencing another roaring day. Gold prices lifted up on Tuesday morning towards 2020 dollars per ounce, while the European market looks set to open lower. Germany's opposition to a ban on Russian energy imports knocked oil futures from Monday's 14-year peak. Still, the supply shock will hurt European growth in the mid-term. 

Energy export disruption weighs on the global economy

On Tuesday, Asian shares fell as oil prices rose and peace talks in Ukraine stalled. Investors have become concerned about inflation and the economy's slowdown due to the possibility of Russian oil imports being banned. Regarding Reuters ' report on Monday, the risk of disruption to Russian energy exports could continue to weigh on markets as President Joe Biden's administration is willing to enact a US ban on Russian oil imports alone even if European allies don't.

Euro buyers halted sell-off aiming for 1.093

The euro tries to bounce back after six straight sessions of selling in the European market opening. Buyers target 1.0930 at around Monday's high. Since Russia invaded Ukraine on Feb. 24, euro rates against the dollar have fallen 4%. Euro and Swiss franc exchange rates came close to parity for the first time in seven years last week. 

The rouble has lost 50% of its value so far

Besides commodities' massive rally, the conflict in Ukraine and the Western sanctions that followed led the rouble to sink to a record low of 154 to the dollar in foreign exchange markets on Tuesday, losing almost half its value against the dollar. The US dollar held steady amid concerns that the war would extend and the economic fallout would spread as well.

Event of today

Data from the Eurozone's GDP are expected to show a surge of growth in the fourth quarter of 2021, with gains of 4.6% on the year. Data from Germany for January already showed that industrial production rose 2.7% over the previous month, a more significant rise than was expected.

Oil prices are seen to rise substantially in the coming months, causing a sharp rise in global inflation. So investors will eagerly monitor the US Consumer Price Index due this week. US inflation is expected to have risen to a record 7.9% year-on-year last month, compared to 7.5% in January.