Safe Haven Demand High Following President Trump’s SpeechNews driven bearish price rally in the broad market is helping sustain demand for safe-haven assets.
Precious metals yesterday saw decline owing to healthy risk appetite in the broad market and risk appetite remained high in early Asian session today. However, U.S. President Donald Trump blamed China for stealing intellectual property and for loss of jobs and profit in America. This caused Sino-U.S. trade war fears to take center stage as a trade deal hasn’t been formed despite progress made even in key issues. And Trump’s latest comments come ahead of China-U.S. presidents meet which will see make or break decision on the trade deal. Also, his comments re-affirming his commitment to building a border wall between U.S. & Mexico renewed fears of a government shutdown as President Trump had previously commented that government will only stay open for 3-weeks.
Crude Oil Price Falls On API Stockpile Data
Following Trump’s speech risk appetite in Asian markets subdued and cues from the Asian market also influenced price action in European equities. The European market is already seeing dovish influence over concerns of an economic slowdown and with renewed trade war fear adding another wave of bearish influence to market, safe haven assets are seeing steady demand across the day. However strong US Dollar in the market continues to limit sharp upside move in precious metals. Strong USD makes precious metals less attractive owing to the higher exchange rate for traders from other nations. As of writing this article, spot gold XAUUSD is trading at $1313.66 per ounce down by 0.12% on the day while U.S. Gold futures GCcv1 were trading at $1317.50 per ounce down by 0.12% on the day.
Meanwhile, spot silver XAGUSD is trading at $15.75 per ounce down by 0.59% on the day. The crude oil price fell today owing to macro data for the U.S.A signaled that Crude oil stockpile in the U.S.A. went up once again as per data published by American Petroleum Institute. Further impact from news of U.S. Sanctions on Venezuelan crude oil eased in the market and this is adding to the bearish influence in the oil market. Both spot and futures market saw sharp losses since the trading session began for the day. As of writing this article, spot crude oil WTIUSD is trading at $53.12 per barrel down by 0.82% on the day.