Precious metals trade in red today across both Asian and European markets owing to healthy risk appetite in the market. Since trading session began for the week, equity and forex market are seeing positive price action across the globe. Optimism surrounding Sino-U.S. trade talks as investors hope for signs that both the countries will finally sign a trade deal and progress in Brexit in the UK which saw both leaders of ruling and opposition party collaborate to find a way out of no-deal Brexit are major contributors to positive price action in the market. Further, macro data also seems to be in support of positive price in major risk assets. Meanwhile, disappointing US macro data continued to hinder USD bulls preventing any sharp declines in the precious metals market.
Crude Oil Gains on Scope For Increased Demand
While risk appetite remains high in the market today, USD remains weaker resulting in rangebound price action with a bearish bias. Dovish price action in the European market also provided some support to the precious metals market. However, prevalent risk on investor sentiment continues to limit fund flow to precious metals market and further progress in geopolitical issues will boost risk on trading activity in the market. This suggests that the outlook for the precious metals market in immediate and near future trading session remains dovish. As of writing this article, spot gold XAUUSD is trading at $1287.08 per ounce down by 0.21% on the day while US gold futures GCcv1 is trading at $1292.50 per ounce down by 0.21% on the day. Meanwhile, spot silver XAGUSD is trading at $14.95 per ounce down by 1.20% on the day.
Crude oil gained positive momentum in the global market since the early trading hours today. The gains were initially fuelled by an increase in the volume of speculative bets. However, the price action later found steady fundamental support from expectations of increased demand as investor hope for a trade deal between US & China to see a positive outcome this month. A trade deal between two nations would result in increased import in China and overall global demand. There is also a factor of tightened supply from the middle east supporting Crude oil bulls. These factors have helped the price of Brent crude oil head towards $70 handle while WTI Crude oil trades well above $60 handle in the futures market. As of writing this article, Spot US Crude oil WTIUSD is currently trading at $62.55 per barrel up by 0.27% on the day.