Gold Gains on Risk Averse Trading Activity in Global Markets

Safe haven demand sustains gold bulls as headlines continues to inspires risk averse trading activity in major global markets.
Colin First
Silver daily chart, November 21, 2018

Gold trades steady on risk averse trading activity in Asian and European markets today. Both equities and forex markets suffered dovish price action as Chinese economic outlook continues to hurt investor sentiment at start of the day. However headlines from European markets continue to remain as main driving force behind global safe haven demand. At start of the week investors focus was on Brexit vote in UK parliament which was then followed by dovish comments from European Central Bank President Mario Draghi who warned European law makers that economic growth is slowdown. European market also saw no-confidence vote on Greece and UK Prime Ministers who won in the move against them.

Headlines Relating To European Market Continues To Play Major Role in Safe Haven Demand

However headlines from US last night which hinted at possibility of imposing tariff’s on European auto market in order to force them into considering opening Agriculture market is their trade negotiation caused investors sentiment to turn dovish even more so than at the start of week. While US Dollar is recovering in broad market owing to broad based risk asset sell off and rising US Treasury Yields, the upside is not significant as partial shutdown of US government still weighs down US Greenback in broad market. As USD remains weak despite slight pick up, precious metals are able to hold their fort for time being. As of writing this article, Spot Gold XAUUSD is trading at $1294.31 per ounce up by 0.05% on the day, while US gold future GCcv1 were unchanged at $1293.80 per ounce despite some action early in the day.

Meanwhile spot Silver XAGUSD is trading flat at $15.589 per ounce down by 0.07% on the day. Crude oil is trading with significant decline today following release of US Crude oil inventory data. While forecast hinted at slight draw in stockpile actual data displayed unexpectedly high stockpile compared to previous reading which hints at continued record production output in US market. This news caused oil price to decline by more than 1% in both spot and futures market. As of writing this article, spot crude oil WTIUSD is trading at $51.70 per barrel down by 1.19% on the day.

Don't miss a thing!

Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All

Top Promotions

Top Brokers

IMPORTANT DISCLAIMERS
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
RISK DISCLAIMER
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.
FOLLOW US