US Dollar’s Strength Limits Precious Metals Price Action

Precious metals continue bearish price action today despite the price of both gold and silver remaining well above critical support levels so far today. The spot market is seeing the price of both gold and silver trade range bound near previous session lows as the US Dollar is regaining strength in the broad market. Demand for safe-haven assets hasn’t been as high as the previous week. While fund flow from cautious investors across the globe continues to underpin safe-haven demand keeping price of precious metals well above critical support price levels, the rally this week has been influenced by weaker USD in broad market as risk appetite is highly prevalent in the broad market.

Crude Oil Hits New 2019 Highs On Sino-U.S. Trade Deal Optimism

The US dollar started gaining strength last night as optimism surrounding Sino-U.S. trade talks rose to new heights following Chinese Vice Premier Liu He’s visit to Washington, USA for face to face meeting and high-level talks with U.S. President Donald Trump. This resulted in 10-year U.S. government bond yields seeing nearly 1% increase in value. Both these factors helped US Dollar regain strength despite Wall Street’s bearish price decline and mixed macro data from the U.S.A. A costly Dollar makes US Greenback denominated precious metals unattractive to investors who hold other currencies owing to increased exchange rates. As of writing this article, spot gold XAUUSD is trading at $1326.60 up by 0.16% on the day.

Meanwhile, US Gold futures GCcv1 are trading at $1328.40 per ounce by 0.04% on the day, while spot Silver XAGUSD is trading at $15.87 per ounce by 0.41% on the day. Crude Oil price today rose to new 2019 highs as optimism surrounding Sino-U.S. trade talks and Production/supply cut enforced by OPEC cartel underpin crude oil bulls in the broad market. Brent futures rose above $67 handle while WTI futures rose above $57 handles resulting in both futures & spot market seeing new yearly highs. As of writing this article, spot WTIUSD is trading at $57.35 per ounce up by 1.57% on the day.