Precious Metals Trade Positive On Demand From European Markets

Precious metals trade positive post two consecutive sessions of sharp decline. While US Dollar continues to remain strong in the broad market, following new monthly highs hit last night risk appetite in broad market has dulled demand for the dollar to some extent. Further concerns of a slowdown in economic activity in Europe and uncertainties surrounding Brexit proceedings ahead of upcoming UK parliament meeting scheduled to occur on Fed 14^th, 2019 continue to supply precious metals with steady demand on safe-haven bets in the broad market. Investors are also worries about a trade war between U.S.- China as headlines inspired both optimism and caution as the deal is unlikely to be finalized until both Presidents meet face to face later this month.

Crude oil Price Surges as US-Canada Keystone Pipeline Closed on Reports of Leak

And even if they meet, President Trump has stated that in case, all issues are not resolved to extents he has deemed satisfactory by the deadline of March 1^st, 2019 he is likely to proceed further with imposing the tariff on Chinese goods. Such an outcome could cripple an already underperforming global economy which has led to steady fund flow to precious metals market across last month and so far till date. This has helped price action stay stable above a critical price level and stage a significant recovery at the first chance available. As of writing this article, spot gold XAUUSD is trading at $1312.98 per ounce up by 0.37% on the day while US gold futures GCcv1 is trading at $1316.40 per ounce up by 0.34% on the day.

Meanwhile, spot silver XAGUSD is trading at $15.79 per ounce by 0.54% on the day. Crude oil price today saw sharp upside price action in broad market over news driven momentum while increased production and supply from the U.S. continues to limit gains. Headlines hit the market that Saudi Arabia- the world’s largest manufacturer of crude oil plans to reduce crude oil production by 9.8 million barrels per day in March 2018. Further reports that Keystone pipeline bringing Crude oil from Steele City, Nebraska, to Patoka, Illinois was closed following the discovery of a leak in the St. Louis, Missouri added to crude oil bulls and helped both spot and future price go up by more than 1% on the day. As of writing this article, Spot Crude WTIUSD is trading at $53.33 per barrel up by 1.85% on the day.