Oil Steady Gold Rises Amid Trump’s Escalation

Calm in oil prices and slight gains in gold amid political and trade pressures led by Washington.

Contents

Energy
Gold

Energy

Trump’s Pressure Shakes Energy Markets
Oil prices stabilized after three consecutive sessions of decline.
Brent crude traded below $69 per barrel after losing more than 6% recently,
while West Texas Intermediate hovered around $66.

This stability comes amid a sharp escalation in rhetoric from U.S. President Donald Trump,
who threatened to impose “major” tariffs on Indian exports to the U.S. over New Delhi’s continued purchases of Russian oil—a move India described as unjustified.

The growing tensions coincide with Trump’s warning to Russia to reach a ceasefire in Ukraine by August 8. U.S. special envoy Steve Witkoff is expected to visit Moscow to follow up on developments.

India, along with China, has emerged as a top importer of Russian oil since early 2022,
benefiting from deep discounts after Western nations pulled back from the Russian market.
Analysts suggest that any disruption in Indian purchases could prompt a shift to alternative supplies—particularly from the OPEC+ alliance,
which recently agreed to increase production starting in September by 547,000 barrels per day.

Meanwhile, the decline in oil prices also reflects concerns over a slowdown in the U.S. economy,
along with renewed fears of an oversupply in the second half of 2025,
due to weakening global demand and OPEC+ plans to ease supply restrictions.

Gold

It Climbs Amid Fed Rate Cut Bets
Gold prices saw modest gains at the start of Asian trading,
with the price per ounce rising by 0.1% to $3,375—driven by growing market expectations that the U.S. Federal Reserve will cut interest rates at its upcoming meeting in September.

Traders are increasingly betting on a significant rate cut after weaker-than-expected jobs data raised fresh concerns about economic slowdown. Lower interest rates typically enhance the appeal of non-yielding assets like gold.

Talk of the Fed’s independence has also resurfaced, especially after the resignation of Federal Reserve Governor Adriana Kugler,
which gives President Trump an opportunity to appoint someone aligned with his push for lower rates.

Gold has surged more than 30% so far this year, supported by geopolitical tensions, trade wars, central bank buying,
and speculation around monetary easing.
Fidelity International recently forecast gold could hit $4,000 per ounce by the end of 2026,
given the supportive macroeconomic environment.

Meanwhile, silver, platinum, and palladium prices held steady, and Bloomberg’s Dollar Index fell by 0.2%.

Oil Steady Gold Rises Amid Trump’s Escalation

Oil Steady Gold Rises Amid Trump’s Escalation

Related Topics