Precious Metals Trade in Red on Profit Booking Activity

Precious metals lost ground today on broad based risk appetite and profit booking activities post recent string of positive gains. While dovish influence cropped out from weak Chinese trade data yesterday, the influence from same was easily erased when headlines from China hit market that the state council is taking measures to make sure the economy improves in first quarter with aim to erase losses incurred during early days of ongoing trade tariff war between China and U.S. However investors remained cautious ahead of UK parliament’s vote on PM May’s brexit deal today. While investors have already priced in possible rejection of deal they are still wary about vote turnout in parliament.

Crude Oil Erased Previous Session Loss & Trades Positive

Ongoing partial shutdown in US government and fed’s patience towards rate hike cycle for 2019 has greatly impacted US Greenback’s strength in broad market. This has helped gold find increased demand in both online and physical market as cheap USD in broad market meant low exchange rate which brought in huge fund flow from emerging markets as traders wanted to stock up on little volumes of gold while price was low owing to risk appetite in market but cheaper USD ensured more gold availability to traders. As of writing this article, spot gold XAUUSD is trading at $1288.81 per ounce down by 0.21% on the day while U.S. gold futures GCcv1 were trading at $1288.80 per ounce down by 0.19% on the day.

Meanwhile spot silver XAGUSD is trading at $15.55 per ounce down by 0.63% on the day as profit booking activity was also found in silver similar to gold owing to recent gains. Crude Oil price regained positive price action and erased losses from yesterday on positive headlines from China. Further ongoing supply/production cut enforced by OPEC nations which has prevented heavy declines in crude oil price action also supported today’s recovery action. While Asian session saw positive price action, European session saw price go down from intra-day highs as investors remained cautious ahead of Brexit update. Spot Crude WTIUSD is trading at $50.91 down by 0.28% on the day.