Gold Price Moves Up on Weak US Greenback in Broad MarketPrecious metals on positive momentum owing to weak USD in broad market despite surge in investment on US Treasury bonds
Precious metals have taken to steady uptrend move during today’s market hours. With US Greenback weaker in the broad market, both yellow and white metals have made considerable gains today. While increase in bond yields usually boost US Greenback in broad market, US bonds hitting new highs caused investor focus to shift funds from forex and equity markets to bond market and significant change in fund flow caused wall street to face huge losses which in turn inspired bearish sentiment in equity markets across globe resulting in weak US greenback.
IMF’s reduction in growth forecast owing to trade war woes and World Bank president’s comments above escalation in trade war leading to a possible decline in major economies across the globe also added to bearish investor sentiment boosting safe-haven demands. This situation has led to yellow metal moving uptrend for the third consecutive trading session today.
Oil Price Fell on US Crude Stockpile Data
As of writing this article, Spot Gold XAUUSD is currently trading at $1198.14 an ounce up 0.28% on the day, while US gold futures GCcv1 is trading at $1200.50 an ounce up 0.59% on the day. Rising interest rates are not good news for gold. People are preferring U.S. Treasury bonds as they are more attractive in the current environment over gold, despite the sell-off in equities and this has limited to gains of yellow metal significantly during today’s trading session, however given the situation of weaker US dollar some amount of activity is found in physical market and investors who wish to keep a reserve of gold as permanent part of portfolio also took to buying gold which led to significant amount of activity in early European market hours. Meanwhile, Spot Silver XAGUSD is currently trading at $14.369 up 0.47% on the day.
Oil prices fell to two-week lows on Thursday as they extended big losses from the previous session amid a rout in global stock markets, with oil also taking a hit from an industry report showing U.S. crude inventories rose more than expected. Supply worries also eased as Hurricane Michael likely spared oil assets from significant damage as it smashed into Florida, even as it caused at least one death, injuries, and widespread destruction. U.S. crude stockpiles rose more than expected last week, while gasoline inventories increased and distillate stocks drew as per API reports released yesterday.
Crude inventories climbed by 9.7 million barrels in the week to Oct. 5 to 410.7 million, compared with analyst expectations for an increase of 2.6 million barrels. Spot Crude WTIUSD is currently trading at $71.78/b down by 1.25% on the day.