Precious Metals Bleed On Healthy Risk On Investor Sentiment

Precious metals are seeing dovish price action as the trading session began for the week owing to lack of safe haven demand. All major equities and indices from key stock exchanges across Asia are trading positive since the trading session began for the day. Major forex pairs are also seeing positive price action in Asian market hours. This is a clear sign that risk appetite is high among investors today. However, the decline has been capped as risk on trading activity in the forex market resulted in US Dollar declining in the global market. A weak US dollar is always positive for greenback denominated precious metals.

Sino-U.S. Trade Optimism Underpins Crude Oil Bulls

Upbeat Chinese manufacturing PMI data and optimism surrounding Sino-U.S. trade talks are the major driving force behind today’s risk on investor sentiment. Following last week’s trade talks between representatives of the two nations in China, Chinese Vice Premier Liu he is expected to travel to Washington this week for further high-level trade talks. As the meeting between Presidents of both nation towards the end of March to conclude the trade deal has been postponed to early April, traders await updates from upcoming trade talks to hint at the possibility of another meeting between both Presidents to sign the trade deal later this month.

As of writing this article, spot gold XAUUSD  is trading at $1291.30 per ounce down by 0.07% on the day while US gold futures GCcv1 is trading at $1294.50 per ounce down by 0.30% on the day. Meanwhile, spot silver XAGUSD is trading at $15.12 per ounce down by 0.09% on the day. Crude oil price is trading positive today supported by risk on investor sentiment. spot US crude oil is trading positive for the fourth consecutive session as support stemming from OPEC enforced supply cut agreement and optimism surrounding Sino-U.S. trade deal which if successful could boost import of US crude oil to China. With positive support from multiple factors, spot US Crude oil is trading at $60.65 per barrel up by 0.80% on the day.