Market Tensions Push Gold Higher and Cap Oil Gains Despite Trump’s Efforts

Energy and metals markets moved cautiously amid escalating trade and diplomatic tensions.

Contents

Oil
Gold

Oil

Partial Recovery After Longest Losing Streak Since May

Oil prices posted a slight rebound after five consecutive days of losses—the longest streak since May.
Brent crude rose above $67 a barrel, trimming part of the 8.7% loss recorded over the past sessions, while West Texas Intermediate settled near $65, as investors closely followed U.S. actions targeting major buyers of Russian crude.

U.S. President Donald Trump intensified trade pressure, announcing a doubling of tariffs on Indian goods to 50% due to New Delhi’s continued purchases of Russian energy. Meanwhile, similar action was notably absent against China, another major importer of Moscow’s oil.

Diplomatically, Trump signaled a “very good chance” of an upcoming meeting with Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky, in a renewed effort to mediate peace. He also confirmed “more sanctions coming” related to Russian oil purchases, with Russia being a member of the OPEC+ alliance.

In light of these developments, markets are bracing for a potential supply surplus later this year following OPEC+’s decision to return more than half a million barrels per day to the market starting in September. This comes as Saudi Arabia raised its official selling prices for the second consecutive month, reflecting confidence in demand.

Gold

Holds Steady Backed by Rate-Cut Bets Despite Threats

Gold prices held steady near $3,370 an ounce, shrugging off escalating rhetoric from Washington—most notably, Trump’s threat to impose 100% tariffs on semiconductor imports in a push to force production back to U.S. soil.

Despite growing friction with trade partners like India and Japan, market participants largely dismissed the noise, focusing instead on increased expectations for interest rate cuts, which typically support gold prices. The anticipation of Trump nominating a temporary Federal Reserve member aligned with his dovish agenda further fueled that sentiment.

Gold has already posted strong annual gains of over 30%, supported by sustained central bank purchases and a growing shift away from U.S. dollar-based assets. These moves come amid a backdrop of intensifying geopolitical tensions and inflationary pressures.

Market Tensions Push Gold Higher and Cap Oil Gains

Market Tensions Push Gold Higher and Cap Oil Gains

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