Global Markets Under Tariff Pressure: Cautious Movements in Oil Prices and Notable Stability in Gold

Markets are experiencing sharp fluctuations amid the escalation of the trade war,
leading to mixed movements in oil and precious metal prices.

Contents:

Oil
Gold

Oil

Cautious Rebound After a Wave of Decline

Crude oil prices recorded a slight uptick after three consecutive sessions of decline,
as a relatively calmer tone returned to the markets and investors assessed the latest developments in U.S. trade policy.
In Asian trading, West Texas Intermediate (WTI) crude surpassed $61 per barrel after losing nearly 15% of its value over the past three days.
Meanwhile, Brent crude closed above $64, although it remains close to its lowest level in four years.

These movements come in light of U.S. President Donald Trump’s threats to impose an additional 50% tariff on Chinese imports—China being the world’s largest crude oil importer—raising new fears of a global economic recession that could weaken energy demand.

Oil prices were also affected by the OPEC+ alliance’s decision to increase production more than expected, altering market balance forecasts.
The intensifying trade war prompted major financial institutions like Goldman Sachs and Morgan Stanley to lower their oil price forecasts for the coming quarters. Société Générale also revised its outlook downward, citing the threat posed by U.S. tariffs on the Chinese economy and global demand for crude.

Gold

Remarkable Stability Backed by Economic Concerns

Amid trade tensions, gold maintained its stability at $2,989 per ounce, benefiting from heightened demand for safe-haven assets.
This steady performance coincided with growing fears that
the global economy may enter a recession due to the escalating protectionist policies adopted by the U.S. administration.

Despite declining over the past three sessions, gold has gained more than 13% since the beginning of the year,
driven by investors’ search for safe assets during periods of economic and geopolitical uncertainty.
However, extreme market volatility may still prompt some investors to liquidate their gold holdings to cover losses elsewhere.

On the policy front, President Trump reaffirmed his commitment to the tariff plan despite warnings of a potential recession,
while expressing openness to negotiate with trade partners.
Alongside gold, silver, palladium, and platinum prices remained stable,
and the Bloomberg Dollar Spot Index showed little change.

Global Markets Under Tariff Pressure: Cautious Movements

Global Markets Under Tariff Pressure: Cautious Movements

Related Topics