Oil and Gold Prices Stabilize Amid Trade Talks and Geopolitical Uncertainty
Oil and gold prices held steady as markets closely watched trade negotiations and awaited key decisions from the OPEC+ alliance,
while demand for safe havens declined.
Topic
Oil
Steady Prices Ahead of OPEC+ Meeting and Trade Negotiation Developments
Oil prices remained stable as Brent crude hovered below $65 per barrel and West Texas Intermediate settled near $61.
The calm in trading followed a quiet session on Monday due to public holidays in London and New York.
Meanwhile, markets assessed the likelihood of easing trade tensions between the European Union and the United States,
especially after Brussels announced an acceleration in trade talks with Washington.
OPEC+ is expected to meet via video conference on May 31—one day earlier than planned—to decide production levels for July.
Preliminary discussions last week hinted at a possible increase in output.
These developments come against the backdrop of a generally downward trend in oil prices,
pressured by global economic concerns and ongoing tariff-related uncertainty.
Analysts continue to point to long-term bearish signals,
citing OPEC+’s potential to relax production cuts and global demand challenges driven by economic pressures.
Gold
Slight Dip as Appetite for Safe-Haven Assets Eases
Gold saw a slight decline, trading near $3,347 per ounce,
as investor demand for safe-haven assets weakened in response to easing geopolitical tensions.
This followed a 0.4% drop on Monday, after the U.S. and EU softened their rhetoric in recent trade discussions.
Despite the recent dip, gold has gained over 25% since the start of the year,
though it still trades about $165 below its all-time high recorded last month.
Bloomberg data shows that gold-backed ETFs experienced five consecutive weeks of outflows, reflecting shifting market sentiment.
Citigroup reiterated its short-term forecast that gold could reach $3,500 per ounce,
supported by rising geopolitical and trade risks, a growing U.S. deficit,
and instability in the Middle East and Ukraine.
Investors are also eyeing the upcoming release of the U.S. Personal Consumption Expenditures (PCE) index—a key inflation gauge for the Federal Reserve.
Oil and Gold Prices Stabilize Amid Trade Talks and Geopolitical Uncertainty