Precious metals continue to see bearish price action in the global market today for the second consecutive trading session. The bearish pressure on the precious metals market is the result of improving risk appetite in the global market. Optimism surrounding Sino-U.S. trade talks, macro data from China & U.S.A. which saw better than expected Manufacturing PMI updates were the main factors supporting market bulls. An upbeat manufacturing PMI is a sign that manufacturing activity remains healthy in both economies despite the ongoing trade war between both nations.
Crude Oil Scales New 2019 Highs
This is a clear sign that economic activity may not be slowing down or face as huge an impact from trade war as expected earlier. This helped ease investors concerns of the global economic slowdown to a great extent in both US & Asian markets. As risk appetite improved, investors continued to book profits and redirect funds from precious metals market into risk assets in stock and forex markets. This is causing price action in the precious metals market to see consecutive sessions of dovish momentum. As of writing this article, spot gold XAUUSD is trading at $1286.81 per ounce up by 0.07% on the day while US gold futures GCcv1 is trading at $1291.40 per ounce up by 0.21% on the day.
Meanwhile, spot silver XAGUSD is trading at $15.03 per ounce down by 0.49% on the day. Crude oil price continued to trade positive for the second consecutive trading session this week. Today’s positive price action was influenced by headlines from the U.S.A which stated that the US is planning to impose another round of sanctions on Iranian crude oil. Reports that a key Venezuelan export terminal halted operations also added support to crude oil bulls as reduced export from these two nations could further improve demand to supply ratio in favor of Crude oil bulls. As of writing this article, spot US crude oil WTIUSD is trading at $61.59 per barrel up by 0.03% on the day having scaled new 2019 highs at $61.83 per barrel earlier today.