Precious Metals Decline On Optimism Influenced Sino-U.S. Trade Talk Headlines

Precious metals are trading with a bearish bias in the global market today. While investor sentiment continues to exhibit signs of cautious tone influenced by multiple factors, demand for safe-haven assets are low. New hit the market that US delegates are traveling to China to hold a two-day trade talk with Chinese counterparts. This has improved risk appetite in the global market. Both Asian and European market hours are seeing mixed activity in forex and equity markets. Further, Optimism surrounding trade talks has reduced the demand for the US Dollar in the global market. This has led to some level of profit booking and reduced fund flow to the precious metals market.

Weak USD Helped Prevent Sharp Declines in Precious Metals

The factors that continue to sustain price action of precious metals above critical support levels remain the same as the previous trading session. Declining global bond yields and concerns surrounding geopolitical issues mainly – standstill scenario in Brexit. Also, US Greenback’s weakness in the broad market added strength to precious metal bulls in the broad market. However, lack of fund flow post profit booking on yesterday’s gains has resulted in a steady decline of gold’s price in the global market. As of writing this article, spot gold XAUUSD is trading at $1305.94 per ounce down by 0.29% on the day, while US gold futures GCcv1 is trading at $1305.10 per ounce down by 0.40% on the day.

Meanwhile, spot silver XAGUSD is trading at $15.22 per ounce down by 0.48% on the day. Crude oil price continues to decline for second consecutive trading session today. As US EIA weekly crude oil inventory data showed a sharp increase in stockpile data, it led to another bout of a sharp decline in crude oil price in both spot and futures market. The price went down nearly twice when compared to yesterday. However, prospects of Russia meeting OPEC target and supply disruption created by OPEC production and supply cut enforcement has helped prevent further declines. Spot US Crude oil WTIUSD is trading at $58.23 per barrel down by 1.59% on the day.