Gold and Oil in the Spotlight: Markets Waver Between U.S. Fiscal Concerns and Geopolitical Tensions

Amid investor anxiety over the U.S. fiscal deficit and ongoing geopolitical tensions,
gold and oil prices are holding on to their gains as markets cautiously await economic data and critical policy decisions.

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Gold
Oil

Gold

Gold Holds Firm Amid Growing Concerns Over U.S. Fiscal Policies

Gold maintained its gains near $3,330 per ounce after rising 2% over the past two sessions,
supported by a weakening U.S. dollar and investor fears surrounding a massive tax plan that could expand the fiscal deficit.

The passage of the new financial legislation may further boost demand for gold as a safe-haven asset,
prompting investors to reconsider the allocation of their portfolios away from U.S. assets.

Despite rising Treasury yields, the weaker dollar has made gold more attractive to buyers,
especially since it is priced in dollars.
Additionally, strong central bank purchases have played a key role in supporting the rally.

Oil

Oil Markets Watch Inventory Reports and OPEC+ Moves Amid Mixed Geopolitical Signals

Brent crude traded above $67 per barrel, supported by a decline in U.S. inventories and concerns
about a potential reignition of conflict between Iran and Israel despite a temporary ceasefire.

The upcoming OPEC+ decision at the end of the week may reshuffle expectations around global oil supply,
while trading volumes have slowed amid anticipation of official data and political statements.

Markets remain on a tightrope, balancing cautious economic optimism with persistent fears of renewed geopolitical volatility in the Middle East.

Gold and Oil in the Spotlight: Markets Waver

Gold and Oil in the Spotlight: Markets Waver

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