Precious Metals Gain Positive Momentum Owing to Escalating Sino-U.S. Trade Tensions

Precious metals continue to trade near weekly lows but weak USD and increased safe-haven demand in the broad market has helped prevent declines. US Dollar last night saw a sharp fall in value in the broad market owing to mixed macro data and comments from Fed Chair Jerome Powell. During his speech yesterday, Fed Chair Jerome Powell stated that recent events have resulted in mixed signal and so FOMC has decided to remain patient and continue observing economic activity before deciding on rate hike plans. This caused gold to recover some loss from early in the week, however, profit booking activities in Asian market hours resulted in precious metals moving back near weekly lows.

US EIA Crude Oil Inventory Data Eyed By Oil Bulls

The price action soon recovered bullish bias in Asian market hours as news hit the market that Pakistan shot down Indian Jet and took pilot as a prisoner in retaliation for Indian air strike earlier this week. This resulted in tensions escalating between two nations and took major equities and futures in Asian and European markets on a bearish ride. Escalating tensions also resulted in safe-haven assets seeing increased demand resulting in both gold and silver rebounding from intra-day lows. As of writing this article, spot gold XAUUSD is trading at $1327.09 per ounce down by 0.14% on the day, while US gold futures GCcv1 is trading at $1329.80 per ounce up by 0.09% on the day.

Meanwhile Spot Silver XAGUSD is trading at $15.86 per ounce down by 0.46% on the day. Crude oil traded positive in broad market today as latest inventory data suggests that production activity has been low in all OPEC nations despite pressure from American President Donald Trump. Decreasing supply in market while demand holds steady is likely to help price climb higher. Investors now await US EIA crude oil inventory data scheduled to release later tonight. A reading that hints at draw in stockpile will give crude oil bulls additional boost. Spot Crude Oil WTIUSD is trading at $56.26 per barrel up by 1.01% on the day.