Gold Rallies and Tech Stocks Advance Ahead of US Data Docket

The euro strengthened on Tuesday, supported by a weaker US dollar as soft economic data amplified expectations that the Federal Reserve could deliver a rate cut at its December meeting.

The latest US figures reinforced a cooling economic backdrop. September’s Producer Price Index held steady, signaling stabilization in inflation pressures, while retail sales slowed but remained positive—an indication that households are becoming more cautious with spending.

Consumer sentiment weakened further as the Conference Board’s November survey posted its steepest monthly drop since April. The report highlighted growing pessimism around employment prospects, income expectations, and overall financial conditions, a decline partly attributed to the ongoing government shutdown.

The combination of steady inflation, fading consumer confidence, and slowing consumption pressured the US dollar, boosting demand for the euro.

In Europe, Germany’s latest GDP release aligned with forecasts, confirming zero quarterly growth in Q3 and underscoring continued stagnation in the region’s largest economy. While the data offered little in the way of optimism, it did not prevent the euro from extending its gains amid broad US dollar weakness.

This week’s Initial Jobless Claims report will be released early due to the Thanksgiving holiday—will be closely watched for further confirmation of cooling economic momentum.

Bitcoin ended the session on Tuesday with minor losses struggling to regain momentum after last week’s drop to a seven-month low. Investors remained cautious as they assessed rising expectations for a U.S. interest rate cut and monitored speculation surrounding a potential new Federal Reserve chair.

After briefly slipping below key support and approaching the $80,000 level, Bitcoin has recovered modestly but continues to trade in a narrow band near $88,000. Market activity remains subdued, with sentiment still fragile following the recent volatility.

Prospects for a December rate cut have strengthened in recent days, supported by softer U.S. economic data that revived hopes of looser monetary policy.

At the same time, renewed chatter that Kevin Hassett — a former Trump administration adviser — could be nominated as the next Fed chair has stirred additional market interest. Hassett is widely viewed as favoring more aggressive rate reductions, a stance that would mark a shift toward easier policy and one typically supportive of risk-sensitive assets, including cryptocurrencies.

Despite the improved macro backdrop, many crypto investors remain hesitant.

In regulatory developments, the Commodity Futures Trading Commission (CFTC) has begun soliciting nominations for a newly proposed “CEO Innovation Council.” Acting Chair Caroline D. Pham announced the initiative Tuesday as part of an effort to broaden the agency’s oversight of cryptocurrencies and digital-asset markets.

Oil prices slipped more than 1% on Tuesday after Ukraine signaled that intensified U.S. diplomatic efforts to end Russia’s war may be gaining traction. Markets reacted to the prospect that a potential peace agreement could eventually unwind Western sanctions on Moscow’s energy sector—raising the possibility of additional supply at a time when traders already expect a global glut in 2026.

Ukraine’s national security chief, Rustem Umerov, said President Volodymyr Zelenskiy may travel to the U.S. in the coming days to finalize a deal with President Donald Trump aimed at ending the conflict. However, Russia has emphasized that any agreement must remain aligned with its core objectives, a stance that tempered crude’s decline and underscored lingering uncertainty.

A peace agreement could allow Russia to increase production toward its OPEC+ quota, according to Commerzbank Research. Sanctions on Rosneft, Lukoil, and restrictions on refined product flows have forced some Indian refiners to scale back purchases, contributing to higher volumes of Russian crude stored at sea—barrels that could return to the market if sanctions are lifted.

In the U.S., crude stockpiles dropped last week while fuel inventories rose, according to preliminary data from the American Petroleum Institute. Analysts had expected crude inventories to increase by 1.86 million barrels for the week ending November 21. Official figures from the Energy Information Administration are due Wednesday at 10:30 a.m. ET (1530 GMT).

U.S. equities finished higher on Tuesday, with gains in health care and consumer names countering pressure on the technology sector sparked by weakness in Nvidia.

While the bulk of the corporate earnings season has wrapped up, several companies are still reporting, with Dell Technologies set to headline results after the closing bell on Tuesday. The company nearly doubled its profit growth target for the next four years earlier this fall, highlighting its push into server infrastructure powering generative AI.

Nvidia shares came under pressure following a report from The Information that Google is in discussions to supply Meta with its AI chips beginning in 2027 under a multibillion-dollar agreement. Concerns over intensifying competition weighed on Nvidia and dragged the tech-heavy Nasdaq. Best Buy gained after posting stronger-than-expected fiscal Q3 results and raising its full-year outlook.

Market sentiment has been buoyed in recent days by dovish signals from several Federal Reserve officials. New York Fed President John Williams suggested last week that a near-term rate cut remains possible, a view echoed by policymakers Christopher Waller and Mary Daly.

September sales rose 0.2%, slowing from August’s 0.6% gain and falling short of economists’ expectations for a 0.4% increase. The data, originally scheduled for mid-October, had been postponed by the 43-day shutdown.

The Fed’s preferred inflation measure, the PCE price index is due Wednesday.