Both Gold and Silver are seeing positive price action today. The positive price action in the global market is a result of increased risk-averse trading activity. Equities in Asian market opened in red on concerns of an economic slowdown. Dovish cues from US Wall Street on T.Yield curve inversion also added to investors risk-averse stance. Key members from major central bank reiterated economic slowdown during their interest rate decisions updates in recent past this month. This has caused a high level of bearish influence to engulf global equity and forex markets. Cues from the Asian market put pressure on investor sentiment in European markets.
Crude Oil Declines on Concerns of US Recession
Further, caution ahead of Brexit proceedings which are scheduled in UK parliament this week also added to safe haven demand. The outcome of the UK parliament’s decision on PM May’s Brexit deal will greatly future proceedings. But looming uncertainties will continue to weigh the risk sentiment in the European market this week. Meanwhile, U.S. T.Yield curve inversion is weighing down USD in the broad market. Precious metals denominated in USD gain momentum when dollar suffers. Demand for safe-haven assets from multiple fronts and weak USD help precious metals trade positive since trading session opened for the day. Given dovish fundamentals in the immediate future, precious metals are likely to continue positive price action.
As of writing this article, spot gold XAUUSD is trading at $1319.59 per ounce up by 0.47% on the day, while US gold futures GCcv1 is trading at $1318.70 per ounce up by 0.48% on the day. Meanwhile, spot silver XAGUSD is trading at $15.55 per ounce up by 0.77% on the day. Crude oil price saw a decline in both spot and futures markets today. Concerns of a recession in the US and global economic slowdown influenced high level of dovish price action. However, OPEC production cut enforcements continue to underpin Crude oil price preventing sharp decline. Spot crude WTIUSD is trading at $58.61 per ounce down by 0.12% on the day.
This article was originally posted on FX Empire
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