- Crude Oil
WTI crude oil futures rose toward $60 per barrel on Wednesday, building a more than 3% gain from the last session, supported by signs of weaker US production and growing demand in Europe and China. Major producers such as Diamondback Energy and Coterra Energy announced plans to reduce their rig counts, helping to limit production.
In China, consumer spending surged during the May Day holiday, while companies in Europe are expected to report first-quarter earnings growth, a positive shift from earlier forecasts of a decline.
Adding to the optimistic sentiment, reports emerged that US and Chinese officials are set to meet this week, boosting hopes for easing tensions between the two largest oil consumers.
Additionally, API data revealed a larger-than-expected draw in US crude oil stocks, with a 4.5 million-barrel decline last week, exceeding the anticipated 2.5 million-barrel drop.
- Gold
Gold prices increased by 3%, closing at $3,430 during Tuesday’s trading session, attributed to pent-up demand from China after an extended market holiday. In today’s trading, the yellow metal has decreased by 1.22% to $3,390 in response to positive indications regarding US-China trade discussions. Washington and Beijing have declared that Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer will travel to Switzerland to negotiate with China’s Vice Premier He Lifeng. This meeting marks the first occurrence since the Trump administration implemented extensive tariffs on China, increasing expectations for a potential agreement between these two major economies. In South Asia, military tensions are escalating between the two nuclear-armed nations, India and Pakistan, which is perceived as favourable for gold. Nevertheless, in the present scenario, the optimism surrounding trade discussions is overshadowing any added demand for safe havens.
From a technical perspective, on a daily timeframe, gold prices have declined by 1.22% to $3,390. The metal could face resistance at $3,435, and an immediate support at $3,370. Further, the 9-day SMA support is also observed at $3,322, followed by the 21-day SMA support at $3,282. The daily RSI is trending downward, suggesting a loss of momentum following three consecutive sessions of upward movement.
Gold prices in the UAE are as follows –
24 Carat – AED 407.75
22 Carat – AED 377.50
21 Carat – AED 362.00
18 Carat – AED 310.25
