Tuesday Market Recap
Market uncertainty surrounding US President Trump’s potential tariff plans fueled safe-haven demand, driving gold prices up more than 1% past the $2,740 mark—the highest since November 6. Gold closed at $2,744.77 per ounce.
Meanwhile, crude oil prices plunged as Trump declared a national energy emergency and hinted at increasing US energy production, heightening fears of slowing economic growth and reduced fuel demand.
Gold Market Overview
Uncertainty over Trump’s tariff policies prompted a flight to safe-haven assets, pushing gold prices above $2,740 per ounce. By market close, gold gained 1.38%, settling at $2,744.77.
Key Factors Driving Gold
- Tariff Speculation: On his first day in office, Trump hinted at imposing 25% tariffs on imports from Mexico and Canada as early as February 1. This heightened market volatility and supported gold prices.
- Dollar Weakness: The Bloomberg Dollar Spot Index fell 1.1%, marking its steepest single-day decline in 14 months, as excessive bullish dollar positions unwound.
- Federal Reserve Watch: Investors are eyeing the upcoming Fed meeting and Personal Consumption Expenditures (PCE) inflation data for potential clues about the central bank’s rate policy.
Technical Outlook for Gold
Gold saw strong upward momentum, breaking past $2,740. After testing support at $2,716 during the US session, prices rallied to close above $2,740. The current bullish breakout suggests further upside potential.
Key Levels to Watch:
- Resistance: $2,755–$2,760
- Support: $2,730–$2,725
Crude Oil Market Overview
WTI crude oil futures tumbled 2.55%, closing at $75.89 per barrel after intraday losses of over 3.1%. Brent crude also declined, losing 1.07% to settle at $79.29 per barrel.
Key Factors Impacting Oil
- Energy Emergency Declaration: Trump’s announcement to increase US energy production and fill the Strategic Petroleum Reserve (SPR) weighed on oil prices.
- Trade Tensions: Uncertainty around tariffs and potential disruptions to Canadian and Mexican imports fueled bearish sentiment.
- Geopolitical Concerns: Trump hinted at halting oil imports from Venezuela, slightly limiting losses as markets assessed the impact on global supply.
Technical Outlook for Oil
Oil prices faced consistent pressure, breaking below $77. Support emerged near $75, where prices briefly stabilized. A retest of resistance near $77 could determine the next move.
Key Levels to Watch:
- Resistance: $77.0–$77.5
- Support: $74.5–$74.0
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. D 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. D 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.
