Market Recap

Gold recovered after testing lows, closing near flat as tariff uncertainty provided support. Meanwhile, oil extended losses, closing below $69 as rising U.S. fuel inventories and prospects of a Russia-Ukraine peace deal weighed on prices.

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Gold Overview

Gold saw choppy trading on Wednesday, briefly dipping to $2,890.75 before rebounding above $2,910 amid ongoing tariff uncertainty. It ultimately closed slightly higher at $2,916.38 per ounce (+0.05%).

Reduced safe-haven demand pressured gold, as markets speculated that the Russia-Ukraine conflict might be nearing an end:

• Ukraine’s President Zelensky confirmed a U.S. invitation to visit Washington this week, potentially signaling progress in diplomatic talks.
• Russia’s Foreign Minister Lavrov announced that Russian and U.S. officials would meet in Istanbul to discuss embassy operations, a move seen as a step toward de-escalation.
• Tariff concerns remain a key support factor:
  • Trump’s administration launched an investigation into potential tariffs on copper imports, fueling concerns over rising trade tensions.
  • David Meger of High Ridge Futures noted that persistent inflation pressure could delay further Fed rate cuts, which could bolster gold as an inflation hedge.

Gold – Technical Outlook

Gold tested resistance at $2,930 before retracing, experiencing downward pressure throughout European and U.S. sessions. During U.S. trading, it dropped below $2,900, finding support around $2,890 before rebounding above $2,910 to close near-flat.

• Key Resistance: $2,935 – $2,940
• Key Support: $2,905 – $2,900

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Oil Overview

Oil extended its decline on Wednesday, with WTI crude futures dropping 0.45% to $68.62 per barrel, and Brent crude slipping 0.67% to $72.53 per barrel.U.S. fuel inventories increased, raising concerns over weak domestic demand:

• EIA data showed a crude stock draw of 2.33 million barrels last week, while analysts had expected a 2.60 million barrel increase.
• Gasoline and distillate inventories unexpectedly rose, heightening fears of a slowdown in fuel demand.

Geopolitical factors weighed on oil prices:

• Prospects of a Russia-Ukraine peace deal grew stronger, with reports indicating that diplomatic talks were progressing. Analysts noted that an agreement could lead to a partial lifting of sanctions on Russia, easing global supply concerns.

Trump’s latest Venezuela policy helped limit losses:

The U.S. terminated its oil trade deal with Venezuela, reversing Biden’s previous concessions. Trump’s move suggests stricter U.S. control over Venezuelan crude supplies.

Oil – Technical Outlook

Oil remained in a weak downtrend, facing resistance at $69.20 before slipping to intraday lows of $68.30.Despite a slight bounce, the overall trend remains bearish with a continuation of downside risks.

• Key Resistance: $70.0 – $70.5
• Key Support: $68.0 – $67.5

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Disclaimer

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