Precious Metals Gain on Caution Ahead of Brexit VoteCaution ahead of Brexit vote in UK parliament and weak USD continue to support positive price action of precious metals despite increased risk appetite in broad market.
Precious metals continue to trade positive on caution ahead of Brexit vote in UK Parliament. While the risk appetite remains high in the broad market, a significant part of global investors continues to express some level of caution ahead of today’s UK parliament meeting as they await clear updates and directional cues before placing further bets. Risk appetite remains high in the broad market supported by news of last-minute changes made to PM Theresa May’s Brexit deal which new contains legally binding amendments which necessitate EU to begin measures for replacing Irish backstop agreement with EU by December 2020. However, traders and analysts alike remain skeptical on how this deal would fare in today’s parliament meeting.
Weak USD Underpins Precious Metal Bulls
The outcome could turn out either way with a no-deal Brexit scenario or move for second Brexit referendum. While both these outcomes are expected to continue boosting market bulls, there are various possibilities in which critical decisions could move forward and while no-deal Brexit may be avoided in today’s session, direction for future proceedings are also need to be addressed and this has caused investors to take a cautious stance. Further, weak US dollar amid increased risk appetite also underpins demand for US greenback denominated precious metals. These factors support precious metals on their positive price action today. As of writing this article, spot gold XAUUSD is trading at $1296.34 per ounce up by 0.22% on the day while US Gold Futures $1295.80 per ounce up by 0.29% on the day.
Meanwhile, spot Silver XAGUSD is trading at $15.41 per ounce up by 0.62% on the day. Crude oil price is trading positive for third consecutive trading session today influenced by positive cues from global market. Crude oil bulls are also supported by news of declines in commercial crude oil inventories in US and assurance from OPEC members on keeping production and output cut steady till June 2019. Both spot and futures are seeing crude oil price trade well near monthly highs today. As of writing this article, spot US Crude oil WTIUSD is trading at $56.89 per ounce up by 0.42% on the day.