Precious Metals Rangebound Amid Risk On Trading Activity in Global Market

Precious metals are trading rangebound post overnight declines as risk appetite continues to rise for the second consecutive trading session. Since news of US delegates visit to China for trade talk between the two nation hit the market, hopes for progress and positive outcome at the end of two -day session has helped improve risk appetite in the global market. Also, a rebound in major global bonds across the globe following week-long decline helped risk on trading activity by supporting and providing a positive influence to market bulls. When looking at price action in the daily and weekly chart, the picture suggests that gold is on the path for the worst decline of the year.

Rebound in Global Bond Market Is A Bane For Precious Metals

While both geopolitical issues namely Brexit and Sino-U.S. trade talks are yet to see a positive resolution, the strength of the US dollar in the global market and headlines inspired optimism kept pressuring precious metals into decline on multiple occasions this month. Price of spot gold has declined below $1300 mark once again. While price action in the market sees rangebound pattern, the bias is favoring bears in immediate and near future trading session. On the last trading session of the month, as of writing this article, spot gold XAUUSD is trading at $1293.50 per ounce up by 0.23% on the day while US gold futures GCcv1 is trading at $1297 per ounce up by 0.14% on the day.

Meanwhile, spot Silver XAGUSD is trading at $15.10 per ounce up by 0.56% on the day. Crude oil price saw positive price action in the global market today. The upside price action was influenced by increased risk appetite and a rebound in major government bond yields across the globe. This along with a healthy supply to demand ratio influenced by OPEC enforced production and supply cut enforcement underpinned crude oil bulls resulting in crude oil price recovering above $60 handle. As of writing this article, spot crude oil WTIUSD is trading at $60.05 per barrel up by 1.30% on the day.