Precious Metals Decline As Dollar Rebound in Broad MarketGold declines from 10-month highs as Fed minutes report influenced a rebound in dollar price action.
Precious metals saw some correction action today but continues to trade well near 2019 highs in broad market as steady safe-haven demand underpins positive price action. Further, precious metal bulls are supported by weak USD in the broad market. Gold price trades in red today, despite price action remaining well above critical support levels. The yellow metal had been scaling new 10-month highs for last three consecutive trading sessions. This rally came to an end during US session last night as Dollar rebound in broad market over mixed signals from Fed meeting minutes which most traders interpreted as the possibility for Fed rate hike in 2019. However, Dollar’s rebound was cut short over comments from Fed member Robert Kaplan who reiterated that Fed is going to maintain its patient approach on rate hike plans for 2019.
Crude Oil Price Declines On Build in US Weekly Inventory Data
Further, yellow metal also saw traders book profit as rally came to an end and this resulted in the price in the spot market seeing a sharp decline. However, the downside remains capped above $1330 handle as safe-haven demand from European markets and fund flow from emerging markets on weak dollar and caution over geopolitical issues underpin gold bulls in the broad market. However, further upside move is unlikely as optimism surrounding Sino-U.S. trade talk continues to underpin investor risk appetite in the broad market that takes away a major chunk of players from precious metals market. As of writing this article spot gold, XAUUSD is trading at $1335.15 per ounce down by 0.25% on the day, while US gold futures GCcv1 is trading at $1337.801 per ounce down by 0.74% on the day.
Meanwhile, spot silver XAGUSD is trading at $15.91 per ounce down by 0.88% on the day. Crude oil is also seeing downside price action in market today. Following data which hinted at increased shale production in U.S.A. API crude oil weekly stockpile data released during pacific-asian market hours earlier today also saw an increase in value. While OPEC production cut limits decline and supports crude oil bulls to some extent, increased production and output from USA is balancing out the supply for demand in market limiting sharp upside move. If the output from US continues to increase, glut scenario is likely to hit again and this concerns is weighing down price in broad market. Investors now await EIA crude oil stockpile data and outcome which hints at increased stockpile will induce further declines. As of writing, spot US Crude oil WTIUSD is trading at $56.95 per barrel down by 0.63% on the day.