Precious Metals Decline as Dollar Rebounds

Precious metal saw dovish price action in the global market today. This dovish price action was influenced following US Greenback’s rebound which began last night after US GDP macro data update saw the positive outcome.  A better than expected result in preliminary readings of GDP data boosted sentiment surrounding US Greenback in the broad market while also influencing a spike in US government bond yields. The upbeat activity in US T.Yields supported USD bulls in the broad market and increased risk appetite in the global market today added to bearish influence on the precious metals market. This led to both gold and silver trading near weekly lows.

Increased Demand For Gold on Weak Price Helped Limit Decline

Meanwhile, concerns of a slowdown in economic activity owing to dismal factory activity data from China and Japan provided some safe-haven demand in the market limiting further declines. Further, yellow metal saw increased physical demand owing to low price and expectations for increased retail activity in the market. These factors helped keep price action well above the critical price level despite the market seeing a significant price drop in both spot and futures markets. As of writing this article, Spot gold XAUUSD is trading at $1306.71 per ounce down by 0.41% on the day while US gold futures GCcv1 is trading at $1308 per ounce down by 0.61% on the day.

Spot Silver XAGUSD is trading at $5.50 per ounce down by 0.70% on the day. Crude oil price rebound in the broad market today as the influence of news and macro data updates on price momentum ebbed down in the global market. Following US sanctions on Venezuelan crude oil the output from Venezuela seems to have gone down by nearly 60%, additionally, OPEC’s production and supply cut enforcement also affected global supply adding strength to crude oil bulls. However, concerns of a slowdown in factory activity in major Asian countries limited gains in the crude oil market. As of writing this article, Spot Crude oil WTIUSD is trading at $56.82 per barrel down by 0.25% on the day.