Precious metals traded positive in the gold market today as price hit one-week lows yesterday. While risk appetite is high in the broad market, given relatively low activity from Asia as most major markets are closed on account of holiday celebrations updates from U.S. & European markets are driving price action. Dovish macro data outcome has resulted in investor sentiment turning cautious over concerns of a global economic slowdown in the Euro area. This combined with the fact that gold price saw a sharp drop helped precious metals see some action owing to a spike in safe-haven demand coming from European markets. However prevalent risk appetite in broad market capped upside move in the precious metals market.
Crude Oil Price Struck At $55 Handle
Given the fact that most major consumers for gold are from the Asian market, the fact that markets are closed for holiday celebration is clearly visible in price action. There is very little trading volume and price volatility for precious metals in both spot and futures market. Precious metals also receive support from the fact that US Dollar in which metals are denominated couldn’t see high level of gains during recovery rally over last 24 hours as fed’ recent dovish statement which continues to add bearish pressure in the broad market. As of writing this article, spot gold XAUUSD is trading at $1314.35 per ounce up by 0.20% on the day, while U.S. gold futures GCcv1 were trading at $1317.90 per ounce down by 0.10% on the day.
Meanwhile, spot silver XAGUSD is trading at $15.88 per ounce up by 0.12% on the day. Crude oil price is currently on range-bound price action. While there is plenty of positive influence in the crude oil market, US spot crude oil price remains trapped well below $56 handle. News of U.S. Sanctions on Venezuelan Crude oil and its impact on global crude oil supply combined with OPEC’s ongoing production and supply cut enforcement has managed to provide global markets with some relief over glut scenario worries. However, record production and output remain as the key factor that has been limiting further upside move. For the last three days, $55 handle has been providing plenty of supply preventing upside move. Spot US Crude oil WTIUSD is currently trading at $54.46 per barrel down by 0.48% on the day.
This article was originally posted on FX Empire
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