Gold Hits Two Week Highs On Increased DemandPrecious metals trade positive owing to divided investor sentiment ahead of Sino-U.S. trade talk outcome
Precious metals have managed to continue to hold steady above critical price levels across the week. While the price of yellow metal has been range bound in the spot market so far, gold managed to achieve a bullish breakout during European market hours today. Unfavorable Brexit proceedings, cautious sentiment surrounding Sino-U.S. trade talk outcome and dovish cues from U.S. Wall Street continue to underpin demand for safe-haven assets during today’s market hours. Gold being the most preferred safe-haven asset in the global market is seeing a high level of positive price activity today. Further, disappointing U.S. macro data outcome last night resulted in US Dollar losing its positive edge in the global market once again.
Lower Inventory Data From OPEC Nations Boosts Crude Oil Price
Precious metals which are denominated in US Greenback usually sees positive price action when Dollar turns dovish in broad market as it leads to increased participation from emerging market owing to cheap exchange rates. This helped gold gain positive edge during late Asian/early European market hours resulting in XAUUSD pair breaching strong resistance at $1318.19 handle which had limited further gains for last seven consecutive trading sessions. As of writing this article, spot gold XAUUSD was trading at $1318.60 per ounce up by 0.47% on the day having hit an intra-day high at $1319.26 per ounce earlier in the day. Meanwhile, US Gold Futures GCcv1 were trading at $1321.60 per ounce up by 0.58% on the day while spot silver XAGUSD was trading at $15.71 per ounce up by 0.60% on the day.
Crude oil is trading positive for the fourth consecutive trading session today. The price action of crude oil in broad market is supported by demand for crude oil created from OPEC production cuts and supply disruptions owing to US sanctions on Venezuelan and Iranian Crude oil exports. According to macro data updates, while US stockpiles may be high, inventory data from OPEC nations continue to show a draw following implementation of OPEC production and supply cuts, lower stockpile data, and increased demand could push price high in the market and this is what’s going on in the market right now. Spot Crude oil WTIUSD is trading at $54.64 per barrel up by 0.40% on the day.