Precious Metals Trade Positive On Steady Demand For Safe Haven Assets Amid Holiday SeasonGold set for second consecutive weekly gain while crude oil price rebounds once again.
Gold inched higher in Asian session and is trading positive having hit new six month high as concerns about slowing global economic growth and a partial government shutdown in the United States stoked safe-haven demand, although gains in equities capped the upside. The precious metal had hit its highest level since June 20 at $1281.30 post which it retracted from intra-day high but trades well near said level. People see gold as the only safe haven at this point of time as USD which gained safe haven status backed by Fed rate hike on Sino-U.S. Trade concerns has lost safe haven status owing to ongoing political and economical issues in US market. The dollar index USD/DXY a gauge of US Greenback’s value versus six major peers edged lower, having lost 0.5% overnight, adding to gold’s appeal by making it cheaper for holders of other currencies.
Crude Oil Rebounds Once Again Ahead of official Inventory Data
As of writing this article, spot gold XAU/USD is currently trading at $1280.85 per ounce up by 0.40% on the day having moved lower from intraday highs but steady on course for second straight weekly gain, while US Gold futures GCcv1 is trading at $1283.50 per ounce up by 0.18% on the day. Financial markets are expecting U.S. growth to slow next year as a result of rising interest rates. A measure of U.S. consumer confidence posted its sharpest decline in more than three years in December, emphasizing the possibility of said phenomenon. Meanwhile Asian markets traded positive today on cues from Wall Street as US indices managed to close positive despite posting losses in early trading hours. Meanwhile Spot Silver XAG/USD also recorded gains in Asian session today and is trading at $15.32 per ounce up by 0.62% on the day as investors are looking to re-balance their portfolio during end of year trading session by redirecting some portion of their funds from risk assets to Silver and other precious metals.
Oil prices rebounded in Asian session today jumping as much as 3% to win back a chunk of the ground they lost in the previous session despite being pressured by ongoing concerns about the global economy and signals of another big build in U.S. crude stockpiles while official supply data is due later today. Yesterday’s session saw oil price fall to lowest in more than a year , a day after their biggest one-day rally in two years, pulled down by worries about the global economy and a supply glut. For the time being, the stock market and the oil market echo each other’s price action as global economic scenario plays great part in demand for Oil consumption. Spot US crude WTI/USD is currently trading at $45.47 per barrel up by 0.55% on the day.