Precious Metals Price Action Continues To Rise on Equity Selloff

Gold prices edged higher on Asian trading hours today as disappointing U.S. earnings hit Asian and European equities.
Colin First
Gold Friday
Gold Friday

Gold prices edged up on Friday and were on track to rise for the fourth straight week, the longest string of weekly gains since January, as Asian stocks slumped amid increasing worries over the outlook for U.S. corporate earnings and global economic slowdown. We are seeing a pretty good rally in gold since the stock market crash. People are more concerned about the current geo-political risks and gold is being looked at more favorably now than in the past. Financial markets have been whipsawed in recent sessions on concerns over global growth as investors fretted over Sino-U.S. trade frictions, a mixed bag of U.S. corporate earnings, Federal Reserve rate hikes and Italian budget woes. Gold, used as an alternative investment during times of political and financial uncertainty, has gained about 6% after falling in mid-August to their lowest since January 2017 at $1,159.96 an ounce.

Oil Price Goes Down Over Comments Made By Saudi Arabia’s OPEC Governor

As of writing this article, Spot Gold XAUUSD is currently trading at $1236.74 an ounce up 0.37% on the day, while US Gold futures GCcv1 is currently trading at $1238.50 an ounce up 0.51% on the day. Gold markets have entered a new trading zone of $1,228-$1,238 as investors are on mood swings over rout in equity market. The short-term narrative is caught between a hawkish U.S. Federal Reserve and a weaker equity market now. Although the risk-off sentiment buoyed gold prices, traders were cautious ahead of the publication of the U.S. third-quarter gross domestic product scheduled to release at 12:30 GMT today. Meanwhile Spot Silver XAGUSD is currently trading at $14.69 up 0.37% on the day.

Crude oil prices fell on Friday amid prospects of lower demand due to slower global economic growth forecasts and headwinds from bearish equity markets. The key driver behind oil prices in the short run could be the concern about a rising US oil inventory and a lower demand prospect due to a slower global growth forecasted by the IMF. Oil prices look poised to head towards a 3rd weekly loss amidst a slump in global equities and economic growth concerns as Saudi Arabia’s OPEC governor said on Thursday that the oil market could face oversupply in the current quarter. However t he latest slide oil prices is likely to remain short-lived due to looming US sanctions on Iran. Spot US Crude WTIUSD is currently trading at $66.72 per barrel down by 0.18% on the day.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.