Gold Steady On Sustained Safe Haven Demand From European Market

Gold continues to trade positive supported by steady demand from European markets as investors remain cautious over ongoing political debacle and Brexit proceedings.
Colin First

Precious metals trade with mixed momentum on cues from major Asian and European markets. While Silver saw steady bearish price action amid increased risk appetite in the broad market, gold price managed to stay in Green. Given the fact that gold is viewed as a recession-proof safe-haven asset, yellow metal continues to garner demand on cautious investor sentiment ahead of today’s UK parliament session where key Brexit proceedings are expected to be addressed. Upside move is limited in gold owing to prevalent risk appetite in broad market as Chinese GDP data met target despite growth pace slowing down to lowest in nearly 3 decades.

Chinese Macro Data Continues To Play Major Role in Broad Market Crude Oil Price Action

European markets continue to suffer from internal political debacle as key players attempt to create a shift in power dynamics while trade war and internal issues in respective nations have caused a slowdown in economic growth. This scenario continues to generate some level of safe haven demand despite positive cues from Asian and US markets which along with ongoing Brexit proceedings has helped gold see steady demand so far this month. As of writing this article, spot gold XAUUSD is trading at $1282.21 per ounce up by 0.05% on the day, while US gold futures GCcv1 were trading at $1281.60 per ounce down by 0.07% on the day. Meanwhile, spot silver XAGUSD is trading at $15.30 per ounce down by 0.18% on the day.

Crude Oil price is relatively stable despite trading in red as OPEC’s production and supply cut enforcement continues to help sustain price in the broad market above $50. China, the top importer of crude oil saw economic data today which hinted at a significant slowdown in global growth which could be viewed as influencing factor for the crude oil price to turn red. However cumulative data of economic growth in China seems to have met target despite facing considerable impact on the economy from ongoing trade war and this is viewed as a positive sign by most traders and investors which has helped prevent sharp downside move in crude oil price action. Spot US Crude oil WTIUSD is trading at $53.59 per barrel down by 0.13% on the day.

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