Gold Gains On Risk-Off Trading Environment Post Dovish Chinese Macro Data

Gold is on bullish price action in broad market since trading session began for the day owing to dovish cues from Asian markets which turned red despite opening in green owing to disappointing trade data. Further weak dollar in broad market owing to investors opinion that fed won’t hike rates any time soon following details found in release of latest Fed meeting minutes also boosted demand for dollar denominated yellow metal. A weak US dollar and risk off trading environment is most bullish scenario that safe haven assets can find it market. Given ongoing political issues, demand for safe haven assets are very high and yellow metal which stands at pinnacle of safe haven assets stands to gain the most from it.

Crude Oil Price Declines As Chinese Trade Data Disappoints

Aside from weak Chinese macro-economic data, in immediate future, there is five day session for parliamentary approval of Prime Minister Theresa May’s Brexit deal in UK which is expected to conclude tomorrow which has also put investors on edge as the outcome is expected to push European markets on strong dovish price action in short term adding to safe haven demand. Cheap USD also boosted participation from two of world’s biggest precious metals market namely China & India in both physical and online markets owing to low exchange rate. As of writing this article, Spot gold XAUUSD is trading at $1294.17 per ounce up by 0.51% on the day while US gold futures GCcv1 were trading at $1294.30 per ounce up by 0.37% on the day.

Meanwhile spot silver XAGUSD is trading at $15.57 per ounce down by 0.17% on the day. Crude oil price slipped today on disappointing Chinese trade data. As top importer of global crude oil market, data from China has great impact on global crude oil price action and given the fact that recent recovery in crude oil price action was supported by headlines which hinted at positive progress between China and U.S.A, a news that influenced bearish price action in Chinese market also affected Crude oil price in broad market. Both major international crude oil benchmarks – Brent & WTI futures were down by more than 1.50% in European market hours which shows impact of Chinese data on crude oil price rally. Spot Crude WTIUSD is trading at $50.59 per barrel down by 2.03% on the day.