Precious Metals Gain on Safe Haven Demand Ahead of Key Geo-Political EventsGold gains positive price action on safe-haven demand ahead of event-filled week and bulls are further supported by weak USD over prolonger US government’s partial shutdown.
Precious metals are seeing steady demand in the broad market today as safe-haven demand is high ahead of next week’s key geopolitical events. Further, a dovish economic outlook signaled by European central bank during their monetary policy update yesterday and failed attempt in US Senate meeting to vote on reopening partial shutdown in US Government and ongoing Sino-U.S trade talks that seem to remain stagnant as key issues are yet to be resolved despite headlines hinting at progress in negotiations. Next will see Brexit and Sino-U.S. trade talks hit headlines once again similar to earlier this month and the possibility of dovish outcome is boosting safe-haven demand in the broad market.
Crude Oil Price Gains On News of Possible US Sanction on Venezuela
Precious metals, unlike safe haven currencies, are viewed as an asset that has the capability to withstand strong changes in the economy and has resulted in seeing steady demand as a reliable mode of investment for centuries. Given the fact that global economy is seeing one of its most unprecedented slowdown soon after its best pace of growth amid global trade wars, safe haven demand has been steady in recent past and is expected to continue positive price action in immediate future ahead. Further demand in the broad market is supported by subdued US dollar which adds to positive influence surrounding safe haven bulls. As of writing this article, Spot gold XAUUSD is trading at $1283.22 per ounce up by 0.16% on the day while US gold futures GCcv1 is trading at $1282.20 per ounce up by 0.18% on the day.
Meanwhile, spot silver XAGUSD is trading at $15.36 per ounce up by 0.27% on the day. Crude oil price shot up in early trade today as news of another possible US sanction on Venezuela’s crude oil exports hit the market. Ongoing turmoil in Venezuela has been a thorny issue for quite some time now but sanctions would result in decreased supply in the market which is perceived as positive for crude oil price as low supply amid diminished demand should help maintain high crude oil price in the broad market. However global supply is yet to really see reduced quantity in circulation as U.S. market is maintaining record production and pushing out a steady supply of crude oil to balance out production and supply cut enforced by OPEC members. Spot Crude WTIUSD is trading at $53.02 per barrel up by 0.17% on the day.