Precious metals have been trading positive throughout the day despite the increased risk appetite, as the US dollar, the currency in which these metals are denominated, has been trading rather weak in the global markets. Concerns surrounding Brexit uncertainty have also increased the demand for safe-haven assets in the broad market that has supported precious metal trading bulls from the beginning of the day’s trading session.
A weak dollar is always positive news for the precious metals denominated in the USD, because it attracts investors who possess other currencies, because of the possibility of a drop in the exchange rate. Taking into consideration the current situation, as there are still geopolitical events that cause changes in the price movements and are still unanswered, investors continue to consider safe haven options as a measure of protecting their investments.
Crude oil traded range-bound on various mixed cues
Together with crude oil, gold and silver are also experiencing a certain level of increased demand in physical markets with the marriage season coming up in India, a period when there is a strong demand for jewelry and wholesalers are actively refilling their stock to make the most of the growing retail demand. These factors led to the return of the gold above the $1300 level, a very important mark for the yellow metal. The Federal Reserve’s outlook for the US dollar is likely to continue on a large scale, and a drop in US yields also adds some negative pressure on the greenback.
This indicates that the US dollar is likely to remain bearish in the near future trading sessions that support the possibility of a positive price movement in the precious metals market before the Fed update.
The XAUUSD is trading at $1305.20 an ounce, or 0.23%, while gold futures are trading at $1304.70 an ounce, up 0.13%. At the same time, XAGUSD is trading at $15.35 an ounce, up 0.39%.
Crude Oil is experiencing limited price action so far today, and witnessed a significant drop earlier due to concerns about the economic slowdown that affected oil last Friday and had a significant impact at the beginning of the Asian session. However, OPEC’s current plans to cut supply from Venezuela continue to support speculators on crude oil, causing positive movements during the European market hours. Crude oil is trading at $58.56 a barrel, up 0.26%.