Precious Metals Steady On Brexit Headlines

Precious Metals are trading steady post overnight gains on historic defeat of UK Government in their Brexit deal approval bid in UK House of Commons. Gold gained in broad market last night following headlines which signaled at record loss for ruling party when PM May’s brexit proposal was rejected in worst loss over a century with the turn out margin at 230 votes. Gold is now trading steady in broad market having seen slight gains during overnight trading session as steady risk appetite in broad market limited further gains. However owing to vote of no-confidence on PM May scheduled for today in UK parliament, there is some level of caution in investor sentiment which has helped precious metals retain their positive price action.

OPEC Production/Supply Cut Helps Limit Sharp Downside Move in Crude Oil

Moreover broad based risk appetite in market weakens usd in broad market which is highly positive for dollar denominated gold. Further investor cautious sentiment in Europe was aggravated by warning from European Central Bank president Mario Draghi, who said that economic growth was slowing down in Europe. As of writing this article, spot gold XAUUSD is trading at $1289.88 per ounce up by 0.04% on the day, while US gold futures GCcv1 were trading at $1289.70 per ounce up by 0.10% on the day. Demand for safe haven asset is also sustaining silver bulls with spot silver XAGUSD trading at $15.59 per ounce up by 0.03% on the day.

Crude oil saw slight downside action post which it is trading range bound with bearish bias as geo-political and trade worries continue to underpin crude oil bears in broad market. However OPEC+ members who have agreed to and enforced production and supply cut which has been effective since trading session began this month have helped support Crude oil price and prevent sharp declines. Investors now await US crude oil inventory data and if outcome matches forecast which shows draw in inventory stockpiles then crude oil price could raise again during US market hours. Spot Crude WTIUSD is trading at $51.86 per barrel down by 0.23% on the day.