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.

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

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

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.