Yahoo Finance Precious Metals Steady On Cautious Investor Sentiment
Precious metals market has changed much since yesterday. Given mixed investor sentiment, price action is precious metals market is range bound with bullish bias as cautious investor sentiment continues to underpin demand for safe-haven assets. Despite prevalent risk appetite in broad market, investors decided to hold back from placing major bets on risk assets and booked profits on recent gains as ongoing Sino-U.S. trade talks is likely to decide whether a trade deal will be signed by both nations and dovish outcome could plunge global markets into another long phase of bearish price action. This has helped precious metals see steady demand in the broad market.
Sino-U.S. Trade Deal Optimism Boosts Crude Oil Price
Precious metals, in general, are considered as safe haven assets by investors across the globe owing to their nature of being resilient to inflation/deflation and any sharp swings in the global economy. Further Spain government losing their budget vote in parliament setting the way for elections and UK parliament session which will provide clues on Brexit proceedings are key events which are likely to inspire a high level of volatility in the broad market. This has caused investors to redirect funds to safe-haven assets and precious metals market to safeguard their investment against volatility. As of writing this article, spot gold XAUUSD was trading at $1306.62 per ounce up by 0.03% on the day, while US gold futures GCcv1 were trading at $1308.60 per ounce down by 0.149% on the day.
Meanwhile, spot silver XAGUSD is trading at $15.58 per ounce up by 0.11% on the day. Crude oil price rose by more than 1% today and traded positive for third consecutive trading session today. Price hit 2019 highs earlier in the day as the market saw influence from optimism surrounding trade talks between China & U.S.A. China being the biggest importer of crude oil, a positive resolution of trade talks will lead to China importing more crude oil and increased imports would mean increased demand which is expected to push crude oil prices higher and this has caused Crude oil to trade positively in the broad market. As of writing this article spot Crude oil, WTIUSD is trading at $54.34 per barrel up by 0.89% on the day.
This article was originally posted on FX Empire
