Oil Under Pressure from Trade Tensions, Gold on Alert

Commodity markets are witnessing significant volatility amid ongoing geopolitical tensions and sudden shifts in economic policies,
with oil facing an unstable trajectory while gold remains in a state of cautious anticipation.

Topic

Oil

Gold

Oil

Global Turbulence Amid U.S. Tariffs and Weak Chinese Demand

Oil extended its wave of volatility as investors reacted to the unexpected shifts in U.S. tariff policy.
Following a brief relief rally sparked by President Donald Trump’s announcement of a 90-day suspension on certain tariffs,
futures returned to losses as tariffs on China were simultaneously raised to 125%.

Brent crude fell below $65 per barrel after posting its strongest daily gain since October,
while West Texas Intermediate (WTI) crude hovered near $62. Analysts indicated that this rebound is unlikely to be sustainable
amid a lack of signs of de-escalation in the U.S.-China trade war.

As the world’s largest oil importer, China faces internal challenges that are weighing on demand,
including a prolonged real estate crisis and the rapid adoption of electric vehicles.
Official data also showed continued consumer inflation decline and falling factory prices,
reflecting deeper economic weakness that may curb fuel and petrochemical consumption.

This comes as the OPEC+ alliance accelerated its production easing at a pace that exceeded expectations,
raising fears of a larger global supply glut—especially as parts of the oil futures curve entered into contango,
a pricing pattern signaling future price declines,
with March 2026 Brent contracts trading lower than those of the following three months.

Gold

Caution Amid Diverging Monetary Policies and Geopolitical Risks

Although detailed gold movements were absent in this round, the broader global market context suggests
that gold continues to act as a safe haven asset amid rising trade tensions and economic uncertainty.

Traditionally, gold benefits from weakening trust in the global economy, particularly during times of geopolitical instability or currency weakness.
With growing concerns about a potential global recession and China’s slowing growth,
gold may gain further support in the coming periods—especially if major economic indicators continue to disappoint.

As markets await key inflation and interest rate reports from the United States and Europe, gold remains in a watchful state,
with investors preparing for potential developments that could reshape the landscape of commodities and safe haven assets.

Oil Under Pressure from Trade Tensions, Gold on Alert

Oil Under Pressure from Trade Tensions, Gold on Alert

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