Precious Metals Gain on Uncertainties Surrounding Geo-Political EventsGold rises on concerns of global economic slowdown while the same factor weighs down crude oil price in global market.
Precious metals are trading positive in global markets today as safe-haven demand in the broad market remained high owing to uncertainties surrounding Sino-U.S. trade talks and Brexit progress. While risk appetite remains high in the market following news of UK parliament voting to delay Brexit deadline and Sino-U.S. trade tensions eased on the report of Chinese Vice Premier Liu He’s telephone conversation with U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer there is a lot of uncertainties surrounding both events. Investors across the globe await detailed updates and clarification regarding same and this is keeping safe-haven demand high in global markets.
Concerns of Global Economic Slowdown Weigh Crude Oil
When it comes to Sino-U.S. trade talk headlines in the market off late says that both parties are either close to signing a trade deal or that deal is getting delayed owing to key issues remaining unresolved but no clear detail on what is the exact point about key issues that is causing the delay and led to delay of meeting between presidents of both nations for signing a trade deal has hit market yet. Similarly, EU is set to see an all member participating meeting on March 21, 2019 and they have the final say in UK’s request for delaying article 50 deadline and how long they are willing to permit the extension given the fact that lawmakers have shut down every single attempt made by EU so far stating that their terms aren’t satisfactory.
As the trading session comes closer to weekly closing with no clear updates on above-mentioned factors, investors have once again begun redirecting their funds to safe-haven assets to prevent loss of funds in case of an unexpected sharp downside move. As of writing this article, spot gold XAUUSD is trading at $1304.23 per ounce up by 0.61% on the day while US Gold futures GCcv1 is trading at $1303.70 up by 0.67% on the day. Meanwhile, spot silver XAGUSD is trading at $15.38 per ounce up by 1.30% on the day. Crude oil price in trading rangebound with a clear lack of directional bias as fundamental support in form of OPEC enforced production and supply cut keeps downside in check while comments from BOJ’s central bank about global economy slowing down and weak macro data from US, China hinting at slowdown added further dovish sentiment to crude market as slowdown in global economy is an indicator of less demand for crude oil. A slowdown in demand is bad for crude oil price outlook and this resulted in directionless price move. Spot US Crude oil WTIUSD is trading at $58.20 per barrel down by 0.41% on the day.