- Crude Oil
WTI crude oil futures fell below $71 per barrel on Wednesday as markets braced for US reciprocal tariffs that could escalate the global trade war.
The White House did not disclose details on the size or scope of the tariffs but stated they would take effect immediately after being unveiled on Wednesday.
President Trump also suggested the levies would impact many countries, raising concerns about a potential economic fallout that could reduce energy demand.
Meanwhile, oil recently found support from Trump’s recent threat of secondary duties on Russian oil and increased sanctions on Iran as part of his maximum pressure campaign to curb exports.
Elsewhere, API data showed crude oil rose by 6 million barrels, while gasoline fell by 1.6 million barrels. Investors are also awaiting the OPEC+ meeting later this week.
- Gold
Gold is trading above $3,110 ahead of US President Donald Trump’s implementation of new tariffs later today. The US tariff policy has been favorable for gold, helping it set more than 15 records this year and achieve a nearly 19% increase year-to-date (YTD).
This rally, resembling a strong performance seen in 1986, has been driven by consistent central bank buying, expectations of lower interest rates, and geopolitical tensions. Additionally, global holdings in bullion-backed exchange-traded funds (ETFs) have surged to their highest levels since September 2023.
On a related note, Richmond Federal Reserve President Thomas Barkin recently mentioned in an interview that the economic outlook is uncertain, making it challenging for policymakers to decide on interest rates. This uncertainty could impact gold prices. Meanwhile, investors are also awaiting several important US economic data reports, notably the Nonfarm Payrolls report on Friday.
On the technical front, the 4-hour chart shows gold trading below the 9-day Simple Moving Average (SMA). If it breaks below the current level, it could target the Fibonacci extension support at $3,090. On the upside, resistance is likely near the previous all-time high of $3,148.
Gold prices in the UAE today are as follows:
24 Carat – AED 375.50
22 Carat – AED 347.75
21 Carat – AED 333.50
18 Carat – AED 285.75
