Gold Trades Positive As Sino-U.S. Trade Optimism Took A Hit On Headlines

Precious metals trade positive following yesterday’s dovish price action, however price action remains well near weekly lows as Dollar rebound in the broad market. US Trade Representative Robert Lighthizer commented last night tariff threat on Chinese goods is likely to last longer and this dented optimism surrounding trade talks between two nations. According to headlines, Robert Lighthizer seems to be less optimistic over the proceedings of trade talks when compared to the positive picture painted by US President Donald Trump. Robert states that the Chinese have yet to make big concessions over structural economic reforms such as curtailing state subsidies and ending the forced transfer of intellectual property.

Price Near Weekly Lows Despite Safe Haven Demand

This has left traders cautious as it reminded people that if President Trump is not satisfied over talks he is likely to push forth with imposing tariff’s even if the deadline has been delayed. This caused an increase in demand for safe-haven assets boosting the influx of funds to precious metals market. Further, Gold has been seeing some activity in India owing to escalating tensions with Pakistan following a recent air strike. But Dollar’s rebound in the broad market following an increase in US Bond Yield has and this limited gains keeping price action near weekly lows despite today’s positive price action. As of writing this article, spot gold XAUUSD is trading at $1325.2 per ounce up by 0.33% on the day, while US gold futures GCcv1 were trading at $1328.60 per ounce up by 0.56% on the day.

Meanwhile, spot Silver XAGUSD is trading at $15.81 per ounce up by 0.48% on the day. The Crude Oil price fell in the broad market today as the latest data from the US hinted that crude oil production in the USA remains at a record high while inventory stockpile also continues to grow. Further, weakening factory output in China & Japan hinting at a slowdown in the economy and declining optimism surrounding Sino-U.S. trade talks added bearish influence to market resulting in downside action. But fundamental support received from OPEC’s production and supply cut enforcement helped limit declines. As of writing this article, spot crude oil WTIUSD is trading at $56.62 per barrel down by 0.16% on the day.