Oil Holds Steady and Gold Stabilizes Amid Global Shifts

As oil prices settle and gold attempts to regain strength,
markets are closely watching political and economic developments
that could reshape global trading dynamics in the coming days.

Content

Oil
Gold

Oil

Calms After Gains as Political Signals Take Center Stage

Following a three-day rally, oil prices entered a phase of stability,
as market attention shifted from the U.S.–China trade agreement to rising geopolitical tensions in the Middle East.

West Texas Intermediate crude traded above $61 per barrel, while Brent hovered just below the $65 mark.
Futures retreated slightly after President Donald Trump signaled progress in nuclear talks with Iran
—raising the possibility of easing restrictions on Iranian oil exports, which weighed on global prices.

Upcoming Gulf Visit Carries Strategic Energy Implications

President Trump is set to begin his first international tour of his second term this week,
starting with a visit to Saudi Arabia—a key player in the OPEC+ alliance.
The visit comes as the coalition prepares for a June meeting, where increased production may be on the table to enforce quota compliance.
This potential output rise has contributed to downward pressure on oil prices this year.

Markets continue to absorb the aftershocks of the wide-ranging U.S. tariffs announced in April,
which triggered retaliatory measures, particularly from China—intensifying concerns about global energy demand.

Is Oversupply on the Horizon? Market Braces for Surplus Risk

Despite a temporary 90-day trade truce between Washington and Beijing, supply-side fears remain unresolved.
Analysts caution that a decision by OPEC+ to boost output could lead to a surplus later this year,
especially given the sluggish recovery in global demand.

Gold

Struggles to Shine After Sharp Drop

Gold’s steep decline paused temporarily, as the yellow metal tried to stabilize following a 2.7% fall earlier in the week.
Easing trade tensions between the U.S. and China shifted investor appetite toward riskier assets like stocks and currencies.

Spot gold hovered near $3,237 per ounce, while investors reassessed the impact of the temporary tariff
agreement between the world’s two largest economies.

A Strong Dollar Adds to Gold’s Challenges

Among the key pressures on gold has been the recent resurgence of the U.S. dollar,
which saw its strongest surge since the November elections, alongside a notable rise in U.S. Treasury yields.
Both developments weakened the appeal of gold as a non-yielding asset.

Looking ahead, market expectations have adjusted to pricing in just two rate cuts by the Federal Reserve in 2025,
amid a reevaluation of inflation forecasts—further dampening gold’s near-term attractiveness.

Markets Cautiously Await Clarity Despite Yearly Gains

Despite a year-to-date gain of nearly 25%, gold faces uncertainty.
Many investors remain cautious amid the lack of detailed clarity in the recent trade announcement,
wary that any renewed escalation could reignite gold’s bullish momentum.

As of early morning trading in Singapore, spot gold stood at $3,237.86 per ounce,
while the Bloomberg Dollar Spot Index remained flat following a 1% surge on Monday.
Meanwhile, silver, palladium, and platinum prices saw little to no movement.

Oil Holds Steady and Gold Stabilizes Amid Global Shifts

Oil Holds Steady and Gold Stabilizes Amid Global Shifts

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