Gold Overview
On Wednesday, gold experienced volatile swings due to multiple factors, including the US granting a one-month tariff exemption for major automakers, weaker-than-expected ADP employment data, and investor caution ahead of Friday’s nonfarm payroll report. Gold briefly dipped below $2,900 before rebounding to $2,930, ultimately settling near flat at $2,919.12 per ounce, up 0.05%.
According to Xinhua News, US President Donald Trump granted Ford and other major automakers a one-month exemption from the newly imposed 25% import tariffs on vehicles from Mexico and Canada. Markets interpreted this decision as a temporary de-escalation of trade tensions, reducing safe-haven demand for gold.
In economic data, February ADP employment unexpectedly dropped to 77,000, the lowest since July 2024, signaling labor market cooling. However, the ISM Services PMI unexpectedly rose to 53.5, beating forecasts. Investors now await Friday’s nonfarm payrolls report, which could shape Federal Reserve rate cut expectations if it also shows weakness.
Peter Grant, VP at Zaner Metals, noted that gold remains supported by strong investor demand, though short-term traders remain cautious before key jobs data. Amid Trump’s tariff policies, safe-haven demand has driven gold to 11 record highs this year, peaking at $2,956.15 on February 24, with YTD gains exceeding 11%.
Gold – Technical Outlook
Gold faced wide swings, initially rebounding in Asian trading, then dropping below $2,900 before recovering in late US trading. The daily candlestick closed as a doji, reflecting uncertainty, with key support at $2,894 and resistance at $2,929.
Gold – Today’s Key Levels
- Resistance: $2,930–$2,935
- Support: $2,905–$2,900
Crude Oil Overview
Oil prices continued their three-day losing streak as rising US crude inventories and OPEC+ production plans weighed on sentiment. WTI crude fell 2.85% to $66.31 per barrel, while Brent crude declined 2.45% to $69.30 per barrel.
According to EIA data, US crude inventories surged by 3.6 million barrels last week to 433.8 million barrels, far exceeding forecasts of 341,000 barrels. Meanwhile, gasoline and distillate stockpiles declined due to strong export demand, increasing concerns about potential supply imbalances. Following the data release, Brent crude dropped over $2 intraday.
Ashley Kelty, Panmure Liberum analyst, stated that retaliatory tariffs from Canada and Mexico have deepened concerns over economic growth and energy demand. Additionally, OPEC+ confirmed its first production increase since 2022, putting further downward pressure on crude prices.
However, oil briefly rebounded after the White House announced that Trump postponed tariffs on some North American-made vehicles for one month following discussions with Ford, GM, and Stellantis executives. A source suggested that Trump may also reconsider the 10% tariff on Canadian crude and gasoline, easing some supply concerns.
Crude Oil – Technical Outlook
WTI crude remained in a strong bearish trend, falling below $66 before finding minor support at $65.50. The market remains weak, with resistance forming near $68.00.
Crude Oil – Today’s Key Levels
- Resistance: $67.50–$68.00
- Support: $65.20–$64.70
Risk Disclosure
Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein.
Disclaimer
This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.
The above information should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution.
