Gold Market Analysis: On Monday (April 7), gold prices remained stable due to strong central bank demand and the potential for an early rate cut by the Federal Reserve. However, gains were limited as some investors sold gold to cover losses from other trades. At the time of writing, spot gold fell by 0.35% to around $3,025, after earlier touching a low of $2,971.09 during the session, with daily volatility exceeding $80. Recently, spot gold prices briefly fell below the psychological threshold of $3,000, raising technical concerns about whether the gold bull market has peaked. Affected by the U.S. tariff policy, global market risk aversion intensified. On Monday during the Asian session, gold prices dropped to a four-week low of $2,971 but later rebounded to around $3,055. Despite China increasing its gold reserves for a fifth consecutive month and expectations of a Fed rate cut providing support, risk aversion-driven asset selling has limited gold’s upside potential. The market is currently caught between the dual forces of risk asset sell-offs and rising demand for safe havens. Although gold is a safe-haven asset, it also faces pressure from liquidity withdrawals. With Fed policy still uncertain and global trade tensions escalating, gold prices may continue to fluctuate.
Gold Strategy for Today: It is recommended to prioritize buying on dips and selling on rebounds. Watch resistance around 3015 and support near 2980.
Crude Oil Market Analysis: On Monday (April 7), during U.S. trading hours, international oil prices continued last week’s decline. Brent crude fell 3.35% to $63.78 per barrel, while U.S. WTI crude dropped 2.73% to $61.34 per barrel. Both benchmarks hit their lowest levels since April 2021. Last Friday, oil prices had already plunged 7% amid rising global trade tensions. According to market surveys, with the U.S. increasing import tariffs and major trading nations responding, investors widely expect global trade frictions to slow economic growth, potentially weakening oil demand in the coming months. Investors are rapidly adjusting their expectations for oil market demand.
Crude Oil Strategy for Today: It is advised to mainly sell on rebounds and buy on dips. Watch resistance around 62.6 and support near 59.6.
Caution is advised. Strategies are for reference only.
