Precious metals market is seeing range bound action with no directional bias today. Some level of cautious investor stance from global markets ahead of tomorrow’s UK parliament meeting and China-U.S. trade talks continue to underpin demand for safe-haven assets. Further subdued US Dollar in the broad market following seven consecutive sessions of positive price action also added to demand for Greenback denominated precious metals. This helped price action remain well above critical support levels. However, high-risk appetite in the broad market, hopes for a trade deal between China-U.S.A. and positive cues from US Wall Street continues to limit upside move for precious metals.
API Crude Stockpile Draw Boosts Crude Oil Price
This scenario where there is a delicate balance between demand for safe-haven assets and risk assets has resulted in range-bound price action while lacking directional bias. The risk appetite in the market was influenced on reports that U.S. President Donald Trump was open to waiving March 1st deadline in case the talks show potential for the possibility of a trade deal between two nations. Such an outcome is highly dovish for precious metals and trade deal between the two nations will result in the price of precious metals falling below critical price levels. As of writing this article, spot gold XAUUSD is trading at $1310.45 per ounce down by 0.03% on the day, while US Gold futures GCcv1 were trading at $1313.40 per ounce down by 0.04% on the day.
Meanwhile, spot silver XAGUSD is trading at $15.67 per ounce down by 0.24% on the day. Crude oil price saw positive price action today influenced by draw in API weekly crude oil data released in Pacific-Asian market hours earlier today. The positive price action in crude oil market was further supported by reports of Saudi Arabia’s plan to reduce crude oil output by March 2019. While OPEC members had agreed to cut supply and production greater impact comes from reduced supply from Saudi which produced below target in January and further reductions from Saudi is likely to decrease supply as output from the U.S. will only be enough to offset demand from Venezuelan sanctions and this is expected to help keep crude oil price trade positive in broad market. As of writing this article, spot US Crude Oil WTIUSD is trading at $53.72 per ounce up by 0.88% on the day.