Gold Gains Momentum As Greenback Loses Ground

Gold price saw an upward momentum during American session yesterday as Greenback lost its momentum post mixed macro data and FOMC minutes update. This momentum carried forward into next trading session and XAUUSD has been trading uptrend across majority of Asian market hours. The pair is currently trading around 1296.80 and went as high as 1298.10 during American market hours. Some Analysts and investors view Fed’s decision to back off the inflation target at 2% as less aggressive approach towards rate hike despite the statement mentioning possible rate hike soon if economic conditions and inflation growth remains intact. This has greatly added support to yellow metals Bull Run. Also President Trump’s proposal to impose new tariff on imported cars and investors worry over new setbacks in U.S.-China trade talks have also caused investors to look into safe haven options thus giving gold bulls the momentum to move up during today’s trading session.

Gold Rises

Silver continues to remain neutral with little to no reaction on global events and dollar’s price swings. The XAGUSD pair continued to move well inside $16 price handle contained inside average price range of last 30 trading sessions. The price so remains capped within $16.25 to $16.69, any major change in the pair’s existing momentum can only be found if it manages to break through $16 price band on either direction.

Oil prices fell on Thursday, pulled down by expectations that OPEC members could step up production in the face of worries over supply from both Venezuela and Iran. International benchmark Brent Crude is trading at $79.65 while WTIUSD is trading around $71.37. A surprise increase in U.S. weekly crude stockpiles also kept a lid on oil prices. Commercial U.S. crude inventories rose by 5.8 million barrels in the week to May 18, beating analyst expectations for a decrease of 1.6 million barrels, the Energy Information Administration (EIA) said on Wednesday. OPEC and some non-OPEC major oil producers are scheduled to meet in Vienna on June 22. The group previously agreed to curb their output by about 1.8 million barrels per day to boost oil prices and clear a supply glut and this meeting is expected to decide the next major move over Oil supply in future. WTIUSD is expected to close for the week at or below $72 as per current situation.