Precious metals see mixed price action owing to strong dollar and increased risk-averse trading in the broad market. While silver trades positive, strong US dollar in broad market drove yellow metal to one-week lows despite prevalent demand for safe-haven assets helping reign in decline above $1300 handle which is critical price level for gold bulls. US Dollar index hit new one week high earlier today and is trading at $96.56 up by 0.18% on the day. Hawkish dollar performance makes it difficult for participants from emerging markets to invest in Greenback denominated precious metals owing to the high exchange rate.
Steady Influx of Safe Haven Demand Helped Gold Retain Hold on $1300 Handle
While higher dollar continues to limit upside move, investors caution on Sino-U.S. trade war and possibility owing to comments made by U.S. President Donald Trump during his state of union speech underpins safe-haven demand in the broad market. Precious metal market is seeing additional support and demand from European markets as investors sentiment has turned cautious while they await updates on UK PM May’s talks with EU officials over further progress on Brexit deal. As of writing this article, spot gold XAUUSD is trading at $1306.70 per ounce up by 0.02% on the day, while US gold futures GCcv1 are trading at $1310.40 per ounce down by 0.30% on the day.
Meanwhile, spot silver XAGUSD is trading at $15.73 per ounce up by 0.36% on the day. Crude oil price is seeing two-way action in the spot market and a steady decline in the futures market. Following back to back reports from US markets published by E.I.A and API both of which showed a steady increase in crude oil stockpile data, crude oil price suffered a sharp loss during Pacific-Asian market hours. However, trading resumed in most major Asian markets today and demand from said markets helped the pair rebound from overnight lows. Crude oil price still remains above $50 supported by OPEC’s production and supply cut enforcement. However, futures markets still see lingering influence of US stockpile data resulting in dovish price action. Spot US Crude oil WTIUSD is trading at $53.62 per ounce down by 0.28% on the day.
This article was originally posted on FX Empire
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