Tag Archives: gold

Gold, Oil, and the Dollar: Who’s Dominating the Trading Arena?

Gold, Oil, and the Dollar: Who’s Dominating the Trading Arena?: From gold hitting record highs to oil under pressure,
the dollar faces challenges.
Explore the top market indicators and trading opportunities this week with Evest insights.

 

Content
Economic Events
EURUSD
Gold
Oil
USDJPY
Nvidia

 

 

 

 

Economic Events

Monday, April 7, 2025

19:48 – China:
Foreign Exchange Reserves (USD) (March)

Tuesday, April 8, 2025

Australia:
NAB Business Confidence Index (March)

17:00 – Canada:
Ivey Purchasing Managers Index (PMI) (March)

Wednesday, April 9, 2025

05:00 – New Zealand:
Reserve Bank of New Zealand Interest Rate Decision

Thursday, April 10, 2025

04:30 – China:
Consumer Price Index (MoM) (March)

04:30 – China:
Consumer Price Index (YoY) (March)

04:30 – China:
Producer Price Index (YoY) (March)

15:30 – United States:
Core Consumer Price Index (Excluding Food & Energy) (MoM) (March)

15:30 – United States:
Consumer Price Index (MoM) (March)

15:30 – United States:
Consumer Price Index (YoY) (March)

Friday, April 11, 2025

09:00 – United Kingdom:
Gross Domestic Product (MoM) (February)
09:00 – Germany:
Consumer Price Index (MoM) (March)
10:00 – Eurozone:
Core Consumer Price Index (Excluding Food & Energy) (YoY) (March)
15:30 – United States:
Producer Price Index (MoM) (March)
15:30 – United States:
Producer Price Index (YoY) (March)

 

 

EURUSD

The EURUSD pair is trading around 1.0962,
following a strong rally last week due to weakness in the U.S. dollar.
The pair retested the supply zone near 1.1200 before experiencing a slight downward correction.

The weak dollar drives the pair’s movements,
especially following Donald Trump’s recent tariff imposition and China’s retaliatory measures.
Analysts expect the dollar to remain weak in the near term.
If the pair breaks above the 1.1205 level and closes higher, buyers may push it further toward 1.1500.

 

Gold

Gold continued to post new historical highs last week,
reaching a peak near $3,168 before beginning a bearish correction driven by profit-taking, closing around $3,037.

Despite the correction, the bullish outlook remains dominant,
especially with rising geopolitical tensions during market holidays and anticipated support at the psychological $3,000 level.
These factors may push gold back toward $3,100 and eventually $3,168.

However, the bearish scenario becomes more likely if gold breaks below $3,000 and closes under that level.

 

 

 

 

 

 

Oil

Oil experienced a sharp sell-off last week due to rising market tensions, fears of a U.S. recession,
and slower global economic growth this year, driven by the U.S.-led trade war with its partners.

These pressures drove oil prices down to $62 as traders reacted to concerns about declining near-term demand.
If the current crisis remains unresolved, analysts anticipate that oil will continue falling toward $60 and $57.

 

USDJPY

Despite the tariffs imposed on Japan, the Japanese yen strengthened last week, reaffirming its status as a safe-haven asset.

The USDJPY pair declined to 146.90. A break below 145.85, followed by a close below that level,
could trigger further downward momentum, potentially pushing the pair toward 142.00.

 

Nvidia Stock

Nvidia stock is trading around $94.3 after a sharp decline in recent sessions.
This decline was triggered by China’s 34% retaliatory tariffs, which exerted significant pressure on U.S. equities.

The stock currently trades above the $90 support level.
If it breaks below this level, sellers may extend the downward trend, potentially driving the price toward $75.

 

Gold, Oil, and the Dollar: Who’s Dominating the Trading Arena?:

The Impact of U.S. Tariffs on Metals and Energy Markets

The Impact of U.S. Tariffs on Metals and Energy Markets: A Strategic Outlook for Executive Leadership

Trump’s Trade War Escalation Disrupts Metals and Energy Markets, Raising Global Slowdown Fears

 

Topic

Metal

Energy Sector

 

 

 

 

Metal

Risk-Off Sentiment Pressures Industrial Metal Prices

Global markets witnessed a sharp decline in industrial metal prices — most notably copper, aluminum, and zinc
— following President Donald Trump’s announcement of a new round of reciprocal tariffs.
These measures are viewed as a significant escalation in the global trade war,
prompting widespread investor concerns over a potential slowdown in demand for industrial commodities.

Although some metals have been exempted from direct tariffs,
the broader trade policies threaten global supply chains and cast uncertainty over industrial growth prospects,
putting substantial downward pressure on key commodity prices.

 

Copper in the Crossfire: Trade Flows and Pricing Disruptions

Copper prices fell by 2% on the London Metal Exchange to $9,510.5 per ton, while U.S. contracts dropped by 2.6%.
This decline reflects mounting concerns over the potential inclusion of copper in future tariffs.
Aluminum is already subject to a 25% tariff under “Section 232,” and copper could follow suit in the coming weeks.

According to Citi Group analysts, copper could slide further to $8,500 per ton in Q2 2025 if trade tensions persist and global industrial growth continues to weaken.

 

A Shift in Investment Behavior: Safe-Haven Assets Take the Lead

As uncertainty rises, investors are increasingly turning to safe-haven assets.
Gold surged to a record high of $3,167.84 per ounce, driven by global fears over the broader economic impact of Trump’s tariff strategy.
Gold was notably one of the few commodities exempted from these tariffs, further enhancing its appeal.

This trend underscores a noticeable shift in investor risk appetite —
a signal for executive leadership to revisit risk management and hedging strategies.

 

 

 

 

 

 

Energy Sector

Exemptions Don’t Ensure Stability

Despite the exemption of oil and natural gas from the new tariff framework, energy markets were not immune to the volatility.
Brent crude dropped 3.2% to $72.52 per barrel, while West Texas Intermediate fell below $70.
This reaction reflects growing concerns about the broader economic implications of the trade war and its effect on global oil demand.

The White House stated that tariffs will be applied to countries with the largest trade imbalances,
granting temporary relief to Canada and Mexico.
However, increased tension with the EU and China (facing tariffs of 20% and 34% respectively)
could lead to abrupt shifts in global energy trade dynamics.

 

Tariffs: Geopolitical Lever or Economic Burden?

Trump framed the new tariff package as a fulfillment of campaign promises, positioning it as a tool to showcase American economic strength.
While the geopolitical goals are clear, the immediate impacts on growth, cost structures,
and supply-demand dynamics represent significant risks to industrial sectors.

Analysts like Marcus Garvey of Macquarie Group warned of the negative implications for global growth and high-risk assets,
emphasizing that the limited exemptions on commodities won’t prevent a widening gap between domestic and global pricing.

 

Strategic Recommendations for Executive Leaders

  • Evaluate Supply Chain Resilience: Reassess contracts and identify alternative raw material sources in anticipation of future restrictions.
  • Enhance Financial Hedging: Consider strengthening hedging positions in metals and energy to mitigate price volatility.
  • Monitor International Policy Developments: Closely track evolving trade disputes between the U.S. and its partners to better assess their market and operational impacts.
  • Update Operational Scenarios: Revise demand and cost projections based on emerging political and trade developments.

 

 

 

 

 

The Impact of U.S. Tariffs on Metals and Energy Markets

Gold and Oil Shine on Trump Tariff Threats

Gold and Oil Shine on Trump Tariff Threats: Global markets are gripped by anticipation and anxiety
as U.S. President Donald Trump prepares to announce a new package of tariffs
that could ignite a full-scale trade war.
Amid this climate of uncertainty, gold and oil have emerged as the top-performing assets, each for its reasons.

 

Contents

Gold Shines
Anticipated Tariffs

Oil Holds Steady 

Fragile Balance
Safe-Haven Assets Gain Appeal

 

 

 

 

Gold Shines as a Safe Haven Amid Global Uncertainty

Gold has recently maintained its record levels,
supported by intense buying activity driven by market fears over potential economic and political fallout.
The yellow metal-stabilized at $3,125.58 per ounce after hitting an all-time high of $3,127.92 in the previous session.

This exceptional performance follows gold’s best quarterly gain since September 1986,
with prices rising nearly 20% since the beginning of 2025.

Analysts, including Amy Gower from Morgan Stanley,
believe that strong physical demand and increased investor interest in gold-backed ETFs fuel this upward trend.

According to Gower, there’s still room for more gains,
projecting that gold could reach between $3,300 and $3,400 this year
in line with Goldman Sachs’ recent forecast upgrade to $3,300 per ounce.

 

Anticipated Tariffs Boost Gold’s Attractiveness

Investors are anxiously awaiting Trump’s speech on Wednesday.
The president is expected to announce broad tariffs on all U.S. trade partners,
amplifying uncertainty and driving more demand for gold as a safe-haven asset.

Notably, after several years of outflows,
holdings in gold-backed ETFs have increased by 6% since the start of the year.
Meanwhile, expectations for Federal Reserve rate cuts remain limited,
making gold more attractive despite offering no yield.

 

 

 

 

Oil Holds Steady Despite Tensions… Trump Threatens Buyers

On the other hand, oil prices stabilized following a strong rally on Monday,
spurred by Trump’s remarks about imposing “secondary sanctions” on countries continuing to buy Russian oil.

Brent crude for June delivery traded near $75 per barrel after jumping 2.8% — its biggest gain since mid-January.
West Texas Intermediate (WTI) also climbed past the $71 mark.

Despite these gains, oil markets remain surrounded by mixed signals
ranging from geopolitical threats and sanctions on Iran and Russia to expectations of increased output from the OPEC+ alliance.


A Fragile Balance in Energy Markets

Oil ended the year’s first quarter at nearly the same level it began after a volatile period.
If the U.S. tariffs are implemented, global energy demand could be negatively impacted,
potentially offsetting the supply constraints caused by sanctions.

Meanwhile, China — the world’s largest oil importer
– posted its fastest industrial growth in March of over a year.
However, future outlooks remain unclear due to the looming impact of upcoming trade tariffs.

 

Safe-Haven Assets Shine Brighter in a Volatile World

Amid rising trade tensions, uncertain monetary policies,
and Trump’s aggressive rhetoric, investors view gold as a reliable haven,
while oil is a speculative tool amid geopolitical flux.
The latest market movements reflect a broader shift toward risk hedging and caution
as the world awaits critical decisions that may reshape the global economic landscape.

 

Gold and Oil Shine on Trump Tariff Threats

 

Gold Shines Again Amid Trade Tensions… Oil Falls Under Russian Pressure

Gold Shines Again Amid Trade Tensions… Oil Falls Under Russian Pressure:
The week began with turmoil in the financial markets,
gold prices surged to new record highs driven by growing demand for safe-haven assets.
In contrast, oil prices fluctuated following sharp remarks from U.S. President Donald Trump against Russia,
raising fears of further escalation in geopolitical tensions.

 

Contents

Gold Surges to Record Levels

Oil Markets Under Pressure

Market Outlook Summary

 

 

 

Gold Surges to Record Levels Amid Rising Trade War Fears

Gold prices continued their upward trajectory, surpassing $3,093 per ounce,
breaking the previous record set last Friday, when the metal closed higher for the fourth consecutive week.
This rally comes ahead of an expected announcement from the White House
regarding a new round of reciprocal tariffs following Trump’s recent decision to impose 25% tariffs on car imports.

Since the beginning of 2024, gold has climbed over 17%, hitting at least 15 new record highs.
This has been driven by heavy central bank purchases and growing demand
for hedging instruments amid rising economic and political uncertainty.

Despite reduced expectations for further Federal Reserve interest rate cuts,
with markets now pricing in only two quarter-point cuts,
gold continues to attract investors as a non-yielding asset that performs well during times of instability.

In this context, Goldman Sachs raised its forecast for gold to $3,300 per ounce by year-end,
citing strong central bank demand and increasing flows into gold-backed ETFs.

As of 6:17 AM Singapore time, spot gold was trading up 0.2% at $3,092.49 per ounce,
while the Bloomberg Dollar Spot Index slipped by 0.1%.
Meanwhile, silver and platinum held steady, and palladium slightly declined.

 

 

 

 

Oil Markets Under Pressure Amid Trump’s Threat of Sanctions on Russia

In contrast, oil prices experienced significant volatility on Monday
after President Trump expressed he was “very angry” with Russian President Vladimir Putin,
threatening to impose strict sanctions on Russian oil exports if a ceasefire agreement with Ukraine is not reached.

Brent crude futures for June delivery traded below $73 per barrel,
while West Texas Intermediate (WTI) hovered around $69.

In an interview with NBC News, Trump stated:

“If I believe Russia is responsible,
then anyone buying oil from them will not be allowed to do business in the United States.
We will impose 25% tariffs on all oil shipments, potentially reaching 50 percentage points.”

These remarks signal potentially far-reaching consequences for the global energy market.
As Russia is one of the world’s top three oil producers,
any move to sanction its exports could result in major supply chain disruptions,
especially for major importers like India and China,
which have been the largest buyers of Russian oil since the war began.

Russia’s crude oil exports hit their highest level in five months in March.
U.S. sanctions on Russian oil tankers have begun to show signs of weakening,
adding further complexity to the global energy picture.

 

Market Outlook Summary

Gold remains the top beneficiary as markets seek clarity amid heightened political and economic tension.
Meanwhile, energy markets are bracing for potential developments that could reshape global supply chains.

 

Gold Shines Again Amid Trade Tensions… Oil Falls Under Russian Pressure

Inflation Anxiety Rattles Wall Street

Inflation Anxiety Rattles Wall Street: U.S. markets experienced a sharp stock selloff,
a rise in bond prices, and gold hitting a new record high amid signs
of weakness in the core of the U.S. economy
and growing fears of worsening inflation driven by the ongoing trade war.

 

Contents

Worst Quarter Since 2022

Concerns Over a U.S. Economic Slowdown

Trump’s Tariffs Deepen Inflation Fears

Downgraded Growth Forecasts

Advice for Investors

 

 

 

 

Worst Quarter Since 2022

The S&P 500 index fell by 2%, with just one session remaining
before the end of a quarter, which is expected to be the worst since 2022.
Data showed a decline in U.S. consumer confidence and a rise in long-term inflation expectations.
This coincided with another report indicating weak spending and rising prices,
just ahead of an anticipated announcement of new tariffs next week.
 Large technology stocks dropped by 3.5%,
Meanwhile, the 10-year U.S. Treasury yield fell by 10 basis points to 4.26%.

 

Concerns Over a U.S. Economic Slowdown

Brett Kenwell from eToro said the biggest concern is that inflation
remains high while the economy is clearly slowing down.
He added, “While this scenario may not be the base case right now,
any increase in its probability could significantly affect investor sentiment.”
 He continued, “Unless there is greater economic deterioration,
it’s too early to conclude we’re entering a period of stagflation.”

According to Bespoke Investment Group, the Nasdaq Composite Index fell by 2.7%,
marking its fifth drop of more than 2% in March,
the highest number in a single month since the bear market in June 2022.
The Dow Jones Industrial Average fell by 1.7%.

Major companies saw broad declines, with Amazon and Alphabet falling
more than 4% and Lululemon Athletica dropping by 14% after issuing a bleak outlook.
At the same time, the U.S. dollar fell by 0.1%, and Bitcoin dropped by 4%.

 

Trump’s Tariffs Deepen Inflation Fears

As President Donald Trump’s administration escalates tariffs,
Consumers are increasingly concerned that these new duties will increase prices.
A sustained rise in costs may push households to reduce non-essential spending,
negatively impacting the broader U.S. economy and corporate earnings.

David Alkaly from Lazard Asset Management said,
“Today’s data reflect the pattern many analysts expect to see in the coming months:
weaker-than-expected spending and stronger-than-expected inflation due to the new tariffs and policy changes.”
 He added that if this pattern continues to appear in official statistics,
it could fuel further concerns as the upcoming tariff announcements approach.

Jim Baird from Plante Moran Financial Advisors stated, “In times of uncertainty,
financial planning becomes more complex, and consumers face difficult decisions.
Inflation has returned as a major and growing concern.”

 

 

 

 

Downgraded Growth Forecasts and Fund Outflows

According to a Bloomberg survey, economists have lowered their forecasts for U.S. economic growth this year.
They expect a decline in consumer spending and slower capital investment
due to uncertainty caused by ongoing changes in trade policy.

At the same time, U.S. equity funds recorded their largest weekly outflows since the start of the year.
In contrast, inflows into European equities continued,
according to Bank of America, citing data from EPFR Global.

 

Advice for Investors: Be Patient

Mark Hackett from Nationwide said the recovery rally could face disruptions,
Although April has historically been a positive month.
He added that investor sentiment has reached extreme levels,
which can sometimes serve as a contrarian indicator.
 He continued, “Historically, when market sentiment becomes this strained,
the S&P 500 tends to deliver strong returns over the next 6 to 12 months.
Overall, investors should remain patient for now.”

Meanwhile, David Lefkowitz from UBS Global Wealth Management
lowered his year-end target for the S&P 500 from 6600 to 6400 points due to recent economic turbulence.
Still, he believes stocks will recover and resume rising through the end of 2025.
 In a note to clients on Friday, he wrote:
“We still believe U.S. equities can recover and post gains this year.”

 

 

Inflation Anxiety Rattles Wall Street

Global Commodity Markets: Oil, Gold, and Aluminum Movements

Global Commodity Markets: Oil, Gold, and Aluminum Movements Amid Economic Volatility

The global commodity markets are experiencing significant fluctuations,
with oil prices influenced by supply and demand balance, gold benefiting from rising economic concerns,
and aluminum facing challenges related to production and costs.

 

Contents

 

 

Oil

Price Stability Amid Supply and Demand Balance

Global oil prices remained relatively stable in today’s trading,
as markets balanced expectations of increasing global demand against fears of economic slowdown.
Brent crude remained near $85 per barrel, while West Texas Intermediate (WTI) crude stabilized around $81 per barrel.

 

Key market factors include:

  • OPEC+ maintaining its production cut policies to support prices.
  • Rising fuel demand in China, the world’s largest oil importer.
  • Concerns over global economic slowdown and its impact on energy consumption.

Investors are closely monitoring U.S. economic data, as any signs of easing inflation could support oil prices by boosting demand.

 

Gold

Prices Surge Amid Rising Economic Concerns

Gold prices rose in global markets today, benefiting from a weaker U.S. dollar and increased demand for safe-haven assets amid economic uncertainties.
Gold climbed to $2,150 per ounce, supported by several factors, including:

  • Expectations of interest rate cuts by the Federal Reserve, which reduces the dollar’s appeal and boosts gold demand.
  • Geopolitical tensions, driving investors toward safe-haven assets.
  • Increased central bank purchases, especially in emerging markets, to strengthen gold reserves.

Given these factors, analysts anticipate that gold may face resistance at $2,180, while $2,100 remains a key support level in case of price corrections.

The spot gold price rose by 0.4% to reach $3,047.93 per ounce, while silver, platinum, and palladium prices declined.

 

 

 

Aluminum

Price Fluctuations Amid Supply and Production Challenges

Aluminum prices fluctuated significantly today, influenced by supply and demand dynamics,
along with environmental policies that limit production from major manufacturers.
The price of aluminum stabilized at $2,350 per ton on the London Metal Exchange, with several key factors at play:

  • Production cuts in China, the world’s largest aluminum producer, due to carbon emission reduction policies.
  • Increasing industrial demand, particularly from the automotive and renewable energy sectors, supporting price growth.
  • Rising energy costs, adding financial pressure on global smelters.

Analysts expect that prices will continue to be influenced by developments in the Chinese market,
along with ongoing supply constraints and changes in global production costs.

 

Conclusion

Commodity markets are experiencing heightened volatility, driven by economic and geopolitical factors shaping price trends.
While oil remains stable due to production policies, gold benefits from market uncertainties,
and aluminum faces supply-side challenges. Investors remain watchful of upcoming economic data and its potential impact on global markets.

 

 

Global Commodity Markets: Oil, Gold, and Aluminum Movements Amid Economic Volatility

Gold Steady at Record Levels Amid Fed Decision and Wall Street Losses

Gold Steady at Record Levels Amid Fed Decision and Wall Street Losses:
Gold prices remained stable near record levels during Wednesday’s trading as demand
Demand for safe-haven assets persisted amid global market caution
and anticipation of the Federal Reserve’s meeting to decide on interest rates.
This comes as Wall Street faces sharp losses amid growing concerns
about an economic slowdown under U.S. President Donald Trump’s leadership.

 

Content
Details

 

 

Details

Spot gold traded at $3,031 per ounce after hitting a record high of $3,038.33.
This was supported by increased demand for safe assets amid deteriorating U.S. economic forecasts
and rising concerns about the impact of the Trump administration’s protectionist trade policies.

On the other hand, U.S. markets saw a broad sell-off, with the Dow Jones falling by 0.75% to 41,536 points,
the S&P 500 dropping by 1% to 5,617 points, and the Nasdaq declining by 1.55% to 17,533 points.

Tech stocks were heavily impacted, with Nvidia losing 2.1% to $117,
Tesla dropped 4.55% to $227.2, and Meta registered a 4% decline to $580.85.

As attention shifts to Federal Reserve Chairman Jerome Powell’s comments after the meeting today,
markets are awaiting clearer signals on the future of U.S. monetary policy,
especially with growing concerns about the impact of tariffs imposed
by the Trump administration on key trade partners like Mexico and Canada,
which could lead to higher prices and increased inflationary pressures.

In Asian markets, gold saw little change at $3,032.66 per ounce,
while silver and platinum prices declined, and palladium remained steady.
The U.S. dollar index remained unchanged as investors continued
to monitor global market trends amidst increasing economic uncertainty.

 

 

Gold, Currencies, and Oil in the Spotlight This Week

Gold, Currencies, and Oil in the Spotlight This Week: Investors are closely watching a series of economic data
and central bank decisions that could strongly impact market movements.
From retail sales in China and the U.S. to interest rate decisions in Japan, the U.S., Switzerland,
and the U.K., along with inflation reports and manufacturing sector indicators
all are expected to drive significant moves in gold, currencies, and oil in the coming days.

 

Content
Economic Calendar

Gold

GBPUSD

OIL

NASDAQ

USDJPY

 

 

 

 

Economic Calendar

Monday, March 17, 2025
05:00 China – Retail Sales (YoY) (February)
 15:30 USA – Core Retail Sales (MoM) (February)
 15:30 USA – Retail Sales (MoM) (February)

Tuesday, March 18, 2025
15:30 Canada – Consumer Price Index (YoY) (February)

Wednesday, March 19, 2025
06:00 Japan – BoJ Interest Rate Decision
 13:00 Eurozone – Consumer Price Index (YoY) (February)
 21:00 USA – Federal Reserve Interest Rate Decision

Thursday, March 20, 2025
11:30 Switzerland – SNB Interest Rate Decision (Q1)
 15:00 UK – Bank of England Interest Rate Decision (March)
 15:30 USA – Initial Jobless Claims
 15:30 USA – Philadelphia Fed Manufacturing Index (March)
 17:00 USA – Existing Home Sales (February)

Friday, March 21, 2025
00:45 New Zealand – Trade Balance (MoM) (February)
 00:45 New Zealand – Trade Balance (YoY) (February)
 02:30 Japan – National Core CPI (YoY) (February)

 

Gold

Gold continued its strong rally recently, reaching a new all-time high near $3,000,
rising faster than market expectations.
This surge comes amid growing concerns of a global economic recession this year due
to the slowdown in both the U.S. and international economies and ongoing tariffs.
 Technically, gold closed last week around $2,984,
and it is expected to retest the support-turned-resistance level at $2,955
before continuing its rise toward the current target of $3,083.

 

 

 

GBPUSD

The GBPUSD pair remains in an upward trend,
supported by the recent weakness in the U.S. dollar.
The pair is approaching a key resistance level at 1.3084,
which may trigger a bearish correction targeting the support level of 1.2810.

 

 

 

 

Oil

Despite a slight rise by the end of last week’s trading, where oil reached $67,
the bearish trend remains dominant due to recession fears that may weaken oil demand globally.
 Oil could see a corrective bounce toward the psychological resistance at $70.
However, if $65 is broken directly, further declines toward $62.3 are likely.

 

Nasdaq 

The Nasdaq index rebounded strongly,
posting over 470 points during last Friday’s session after several weeks of consistent losses.
This rally came following statements from President Donald Trump,
who confirmed that the U.S. economy will achieve significant growth during his term.
This confirmed market optimism and helped U.S. equities recover some recent losses.
 Technically, the index must break and close above 19,887 to continue rising toward 20,554.
However, if trading remains below 19,887, the downtrend may continue toward 18,451.

 

USDJPY

The Japanese yen has been one of the main beneficiaries of the recent weakness in the U.S. dollar,
especially after the Bank of Japan raised interest rates,
with expectations of further hikes in the coming periods.
 The USDJPY pair traded at 146.41 before rebounding to 148.61 as the dollar regained strength by the week’s end.
However, the bearish outlook still prevails,
particularly if the pair remains below 149.00,
which could lead to further declines toward 145.85.
Conversely, if 149.00 is breached and closed above, we could see a continued bullish correction toward 152.00.

 

Gold, Currencies, and Oil in the Spotlight This Week

Gold Rebounds Above $2,900 Amid Global Market Concerns

Gold Rebounds Above $2,900 Amid Global Market Concerns

Gold prices have recovered, surpassing $2,900 per ounce,
benefiting from the slowdown in the U.S. stock sell-off despite ongoing concerns
about the global economy and monetary policies.

 

Contents

 

 

 

 

Market Turbulence

Gold prices surged above $2,900 per ounce, capitalizing on the slowdown of the sharp sell-off that rattled global markets,
despite persistent investor concerns about the future of the U.S. economy.

This rally followed a slight decline in gold prices on Monday, after former U.S. President Donald Trump stated that the economy might face challenges before improving, as he reshapes trade policies and imposes tariffs.
His remarks fueled concerns about a potential economic recession.
Although gold could face selling pressure during severe market downturns—as investors may liquidate the precious metal to cover losses elsewhere—it remains up 10% since the start of the year, reaching consecutive record highs.

Several factors are driving this strong performance, including fears over economic disruptions caused by U.S. policies, continued gold purchases by central banks, and speculation that the Federal Reserve may implement further interest rate cuts. Lower interest rates enhance gold’s appeal as a safe-haven asset since it does not yield direct financial returns.

Despite the price surge, demand for physical gold in major Asian economies, particularly India and China, has weakened. However, investment flows into gold-backed exchange-traded funds (ETFs) have remained stable, reaching their highest levels since December 2023, according to Bloomberg data.

 

 

 

 

Demand in Asia

Suki Cooper, an analyst at Standard Chartered, stated in a research note that “gold lacks a strong demand base in the physical market” due to weak demand in India and China.
Nevertheless, markets are expected to witness new record highs this year,
provided that investment flows into gold ETFs remain strong enough to offset declining physical demand.

Before the recent market downturn, investors had been reducing their exposure to gold, with hedge funds cutting their bullish positions to the lowest level in nine weeks, according to the latest data from the Commodity Futures Trading Commission.

As of 7:30 a.m. in London, spot gold rose by 0.4% to $2,900.78 per ounce, while the Bloomberg Dollar Spot Index declined by 0.2%.
Silver and palladium posted slight gains, while platinum remained largely unchanged.

 

 

 

Gold Rebounds Above $2,900 Amid Global Market Concerns

Market Volatility: Gold Declines and Oil Rises Amid Economic and Political Changes

Market Volatility: Gold Declines and Oil Rises Amid Economic and Political Changes

Global markets are experiencing mixed movements,
with gold declining due to profit-taking after reaching a record high,
while oil prices are rising following new U.S. sanctions on Iran.
This reflects the impact of economic and political factors on key assets.

 

Content

 

 

 

 

Gold

Gold Prices Decline Due to Profit-Taking After Reaching a Record High

Gold prices dropped as investors took profits after the precious metal reached a new record high.
The spot price of gold fell by 0.5% to $2,937.65 per ounce, after peaking at $2,956.19 per ounce on Monday,
driven by expectations of a Federal Reserve interest rate cut and increased demand for gold as a safe-haven asset.

This decline comes amid shifting expectations regarding U.S. monetary policy,
as markets now anticipate a delayed rate cut compared to forecasts from just a week ago,
which enhances gold’s appeal as a non-yielding asset.

On the geopolitical front, the administration of U.S. President Donald Trump has escalated tensions
with China through new measures related to investment and trade,
increasing risks for relations between the two nations.
Gold also received additional support from declining U.S. government bond yields following strong demand in a two-year bond auction,
coinciding with weak economic activity data from last week.

Exchange-traded funds (ETFs) backed by gold also saw strong inflows, recording their highest net purchases since 2022,
helping the metal gain more than 12% since the beginning of the year.

Investors are now focusing on the Core Personal Consumption Expenditures (PCE) Price Index,
set to be released on Friday, which may provide new insights into the Federal Reserve’s monetary policy outlook.

As of 12:18 PM Singapore time, spot gold prices settled at $2,937.65 per ounce, down 0.5%,
while the Bloomberg Dollar Spot Index declined by 0.1%. Silver remained unchanged,
while both platinum and palladium saw slight declines.

 

 

 

 

 

Oil

Oil Prices Rise Following New U.S. Sanctions on Iran

Oil prices rose for the second consecutive session after the United States imposed new sanctions targeting Iranian oil exports,
marking a return to Washington’s “maximum pressure” strategy against Tehran.

West Texas Intermediate (WTI) crude rose to $71 per barrel, after gaining 0.4% on Monday, while Brent crude neared $75 per barrel.

The U.S. sanctions affected 22 individuals and 13 vessels, which Washington claimed were involved in illegal Iranian oil shipments.
The targeted entities are located in Iran, the UAE, Hong Kong, India, and China.

 

Market Volatility and Supply Challenges

Oil prices have experienced a volatile start to the year, initially rising due to cold weather and a previous round of U.S. sanctions
but later facing downward pressure due to concerns over tariffs imposed by the Trump administration.
In a press conference, the U.S. President confirmed that tariffs on Canada and Mexico would proceed as planned,
which could impact oil shipments and increase transportation costs.

In addition to sanctions, the market faces other supply-related challenges.
Investors widely expect the OPEC+ alliance to postpone production hikes once again.
Meanwhile, Iraq is seeking to resume oil flows through the Kurdistan pipeline,
and ongoing negotiations to end the war in Ukraine could impact Russian oil exports.

In London, the International Energy Week Conference is set to begin on Tuesday, where Fatih Birol,
head of the International Energy Agency (IEA), along with top executives from leading energy companies,
will discuss the future outlook for oil markets.

 

 

 

Market Volatility: Gold Declines and Oil Rises Amid Economic and Political Changes