Gold Market Analysis:
Gold surged and then retreated on Wednesday as the ongoing Russia-Ukraine conflict and the World Bank’s downgrade of global economic growth forecasts initially pushed gold prices higher, with intraday prices reaching $3,360.01 per ounce.
However, those gains were later erased as traders closely monitored China-U.S. trade negotiations, which could ease trade tensions and boost the global economy—thereby reducing demand for safe-haven assets like gold.
At the same time, continued gains in U.S. equities also dampened safe-haven demand for gold.
Additionally, last week’s strong U.S. non-farm payroll (NFP) data triggered a U.S. dollar rebound, which weighed on gold prices.
That said, market expectations for future Fed interest rate cuts still persist, and rising geopolitical tensions continue to offer some support for gold, leading to a choppy and range-bound market.
In summary, the gold market is currently under the intertwined influence of multiple factors.
Geopolitical tensions and a slowing global economy are providing solid support at the bottom, while optimism surrounding U.S.-China trade talks and a stronger dollar are limiting the upside potential.
Gold Strategy Today:
It is recommended to prioritize buying on dips, with short-selling on rebounds as a secondary strategy.
Watch for resistance around $3,390 and support near $3,352.
Crude Oil Market Analysis:
Oil prices came under pressure and fell in early trading on Wednesday, as the market weighed the impact of global trade developments on the outlook for global crude oil demand.
Brent crude futures fell by 24 cents, or 0.36%, to $66.63 per barrel;
U.S. West Texas Intermediate (WTI) fell by 21 cents, or 0.32%, to $64.77 per barrel.
After two days of intense negotiations in London, the major Asian economy and the U.S. have reached a framework agreement on restarting trade talks.
U.S. Commerce Secretary Howard Lutnick said after the talks that the framework still requires President Trump’s review and approval.
Currently, oil prices are displaying a tug-of-war pattern between bulls and bears:
- On one hand, the easing of global trade tensions provides short-term support to market sentiment.
- On the other, OPEC’s ongoing production increases continue to raise concerns about potential oversupply.
Moving forward, oil prices may require further direction from U.S. inventory data, which could provide short-term guidance.
Crude Oil Strategy Today:
It is recommended to prioritize short-selling on rebounds, with buying on dips as a secondary strategy.
Watch for resistance around $68.1 and support near $65.1.
Caution is advised. These suggestions are for reference only.
