Precious metals finally edged up from multi-week lows as global equity market is currently seeing bearish price action amid mixed signals from macro data and headlines. However, given the strength of the US dollar in the broad market, precious metals were unable to establish a solid recovery rally. Precious metal bulls are for now making the best of the current market situation but there is little chance for either gold or silver to breach past critical resistance levels. In the current market scenario, gold is still regarded as the most preferred #1 safe haven assets despite dollar gaining strength and political woes stemming from the USA has dampened US Greenback’s long term outlook.
US Stockpile Data Continues To Hinder Crude Oil Bulls
The month of March is usually considered the marriage season in India and so retail sales are likely to rise up in the month ahead. This should create an increased demand for gold in the physical market and given the current low price of yellow metal in the spot market, it is high time that demand from wholesale dealers and large scale investors spiked up in the Indian market. This situation should lead to gold bulls some level of fundamental support in the market. As of writing this article, spot gold XAUUSD is trading at $1285.31 per ounce down by 0.21% on the day, while US Gold futures GCcv1 is trading at $1286.40 up by 0.13% on the day.
Meanwhile, spot silver XAGUSD is trading at $15.09 per ounce down by 0.27% on the day. The crude oil price fell in both spot and futures market today following API weekly stocks released earlier today. Further, bearish sentiment surrounding Crude oil rose higher on increased output forecast from two major U.S. Crude oil producers which are expected to boost an already increasing crude oil stockpile in U.S.A. However, OPEC’s production and supply cut enforcement continue to limit further declines. Investors now await US EIA crude oil stockpile data and an increased stockpile data from same could influence further downside action in crude oil price. Spot US Crude Oil WTIUSD is trading at $55.83 per ounce down by 0.36% on the day.
This article was originally posted on FX Empire
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