Yahoo Finance Precious Metals Trade Flat Amid Positive Investor Sentiment on Easing Sino-U.S. Trade Tensions
Gold was little changed on Thursday as the dollar steadied and equities climbed on signs of easing trade tensions between the United States and China. Market sentiment is neutral today as proceedings between China and US is more positive than expected which is providing fundamental resistance for precious metals on upside denting demand for safe-haven assets.
The dollar hasn’t made many moves and that’s the real signpost for gold as they are still highly correlated. The dollar index DXY which measures the greenback against six major rivals is down a tad at 96.958, after retreating from a near one-month high overnight. Meanwhile, Asian shares advanced on signs of easing trade tensions between the world’s top two economies, and expectations that China will step up efforts soon to support its cooling economy.
Gold Continues To Trade Positive On Subdued USD
As of writing this article, Spot gold XAU/USD is trading at $1246 an ounce up by 0.02% on the day, while US gold futures GCcv1 is trading at $1249.90 an ounce down by 0.008% on the day. Despite ongoing positive proceedings in market investors remain cautious and there is some demand for safe-haven assets as Brexit uncertainties remain unchanged while investors are beginning to question if France President Macron’s promises of tax relief put the country at odds with EU norms. Investors focus is now on ECB rate decision scheduled to release today and US Fed rate hike decision scheduled to occur later this month for forwarding guidance on rate hike process for 2019. Gold is expected to gain upper hand after US Fed rate hike announcement is made as market is expecting a more dovish signal from the Fed.
Spot Silver XAG/USD is currently trading at $14.79 an ounce up by 0.30% on the day. Oil prices edged higher on Thursday, buoyed by a drawdown in U.S. crude stockpiles and indications that the trade war between the United States and China, the world’s two largest economies and the top two oil consumers, is easing.
Crude oil prices have also been supported by OPEC-led supply curbs announced last week, although gains were capped after the producer group lowered its 2019 demand forecast. U.S. crude inventories fell by 1.2 million barrels in the week to Dec. 7, compared with expectations for a decrease of 3 million barrels as per data released yesterday. As of writing this article, spot US crude WTI/USD is currently trading at $51.24 per barrel up by 0.16% on the day.
This article was originally posted on FX Empire
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