Precious Metals Consolidate Near Multi-Week Lows As Major Equities DeclineDeclining equities lead to precious metals consolidating near previous session lows.
Precious metals are currently trading in red for the third consecutive trading session. As optimism surrounding Sino-U.S. trade remains high in the market, risk appetite remained high capping fund flow towards safe-haven assets. Further, USD the currency in which precious metals are priced in also remains strong resulting in reduced attraction towards precious metals leading to decline. However, US market has got tired of conflicting headlines hinting repeatedly that trade deal is nearby, also there is no clear detail on what has been addressed in talks so far. News driven optimism that lacks solid details is no longer appealing to investors and Wall Street suffered some declines on profit booking and weak US macro data last night.
Crude Oil Price Recovers on News Driven Momentum
This resulted in USD weakening slightly in the broad market. Further, disappointing macro data from China resulted in Asian indices seeing a decline. This combined with the weak price of gold and silver in the broad market attracted some attention from emerging markets. These factors helped gold and silver see some consolidative price action near multi-week lows hit during the previous trading session. Given mixed market sentiment today, precious metals are likely to see rangebound price activity for rest of the day’s trading session. As of writing this article, spot gold XAUUSD is trading at $1284.77 per ounce down by 0.15% on the day while US gold futures GCcv1 is trading at $1285.40 per ounce down by 0.16% on the day. Meanwhile, Spot silver is also trading flat well near a three-month low hit in the previous session slightly above $15 handle in early European market hours.
As of writing this article, spot silver is at $15.09 per ounce up by 0.03% on the day. Crude oil price fell early in the day on reports that China cut growth target and on disappointing macro data from China. However, reports which suggested that output cut enforced by OPEC is likely to remain strong till June and may even extend beyond June 2019 helped erase loss and trade positive in the spot market. Also, reports hinted that post the recent argument with Saudi Arabia, Russia is moving forward to meet its quota for the reduction of crude oil production and output by end of this month. This added positive influence to crude oil bulls resulting in a stable positive price action of crude oil inthe spot market. As of writing this article, spot crude oil WTIUSD is trading at $56.38 up by 0.27% on the day.