Precious Metals Steady on Last Trading Session of the Year

Precious metals steady on safe haven demand despite boost in equity markets on last trading session of the week.
Colin First

Gold held steady on Monday as equities gained on likely progress in Sino-U.S. trade standoff, but bullion prices were heading for their first annual decline since 2015, losing to the dollar mostly on trade worries and higher interest rates. However, the precious metal was on track for its best month since January 2017, having scrambled back from sharp declines in the year due to volatility in equities and a subdued dollar, along with worries over slowing global growth. Gold dropped over 15 percent from a peak of $1,365.2 in April to a 1-1/2-year low in August this year to $1,159.96. The yellow metal has gained nearly 10 percent since then.

Boost in Equity Limited Upside Move of Precious Metals

As of writing this article, spot gold XAUUSD is currently trading at $1283.08 per ounce up by 0.17% on the day. Meanwhile, Gold futures GCcv1 is trading at $1285.35 per ounce up by 0.18% on the day. Asian stocks crept higher on Monday as hints of progress on the Sino-U.S. trade standoff provided a rare glimmer of optimism in what has been a rough year-end for equities globally. This boost I equity markets curbed upward price action of gold to some extent. Meanwhile, spot Silver XAGUSD is trading at $15.49 per ounce up by 0.98% on the day. Meanwhile, market volume is expected to remain low as major markets close early ahead of New Year eve.

Oil prices edged higher on the last trading day of the year on Monday, taking a cue from firmer stock markets, but remain on track for the first yearly decline in three years amid concerns of a supply glut. Hints of progress on a possible US-China trade deal helped bolster sentiment, which has been battered by concerns over a weaker global economic outlook. Meanwhile, investors look forward to seeing an impact on OPEC’s planned supply and production cuts which are expected to begin this January. Spot crude WTIUSD is currently trading at $46.425 per barrel up by 2.12% on the day.

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