Precious Metals Hold Steady Amid Renewed Risk Appetite
Precious metals are seeing mixed price action in global spot and futures markets today. The price of precious metals holds steady below weekly highs but trades flat as risk appetite returned to the market. Key European events yesterday saw a positive outcome resulting in the market seeing positive fundamental support. This along with gains in tech shares which helped US Wall Street see positive closing for the day helped Asian indices and equities trade positive today. Meanwhile, decreasing physical demand from Indian retail jewelers ahead of tax season also contributed to the declining price of yellow metals.
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Gold Gains on Declining European Equities
However, later in the day price of gold saw an increase in bid action as European equities declined despite overall fundamentals retaining its positive stance. Disappointing macro data is the reason for the decline in European equities but as the market was painted in red, the yellow metal saw an increase in fund flow. While the immediate price action is positive, when looking from a fundamental perspective, the price of gold is likely to stagnate as risk assets are likely to trade positive on a favorable outcome in recent geopolitical events and reduced demand from the Indian market.
As of writing this article, spot gold XAUUSD is trading at $1311.02 per ounce up by 0.13% on the day, while US Gold futures GCcv1 were trading at $1310.70 per ounce up by 0.26% on the day. Meanwhile, spot silver XAGUSD is trading at $15.42 per ounce down by 0.27% on the day. crude oil price saw sharp declines in the spot market today as well. But given the fact that price is trading well above $58 handle and touched new 2019 highs earlier this week, spot price in on path for positive weekly closing as the trading session comes to close for the week. Spot US crude oil WTIUSD is trading at $58.91 per ounce down by 1.14% on the day.