Crude Oil, Gold & Bitcoin React to U.S. Tariffs – Century Financial

• Crude Oil

WTI crude oil futures rose to around $73.9 per barrel on Monday after U.S. President Donald Trump imposed tariffs on Canada, Mexico, and China, raising concerns about potential supply disruptions. The U.S. announced tariffs of 25% on goods from Canada and Mexico, and 10% on those from China, set to take effect on Tuesday. Canadian oil also faces a 10% tariff, while Mexican energy imports will be charged the full 25%, threatening higher costs for consumers. In response, Canada and Mexico said they were preparing similar tariffs on U.S. goods, while China said it would file a lawsuit at the World Trade Organization. However, crude prices may face downward pressure in the near term as the implementation of tariffs and the subsequent retaliation could trigger a broader trade war, weighing on global economic growth and dampening energy demand. Meanwhile, factory activity in China, the largest oil importer, grew at a slower pace in January.
CryptocurrencyBitcoin and other major cryptocurrencies slid on Monday as the threat of a global trade war heightened market uncertainty, pushing investors away from riskier assets.

Bitcoin, the world’s largest cryptocurrency by market value, fell to a low of $91,242.89 on Monday morning in Asia. However, it was trading 6.6% lower at $92,991. Meanwhile, Ethereum dropped over 20%, returning to levels last seen in early September, last fetching $2,470.

The downturn followed the weekend’s news that U.S. President Donald Trump had imposed 25% tariffs on most Mexican and Canadian imports, and a 10% tariff on Chinese goods, effective Tuesday. Canada and Mexico, the top two U.S. trading partners, immediately vowed retaliatory measures, while China announced plans to challenge the tariffs at the World Trade Organization. Investors are concerned that the tariffs could hurt economic growth and corporate earnings, potentially fueling inflation.

BTC has strong support around the $90,000 mark, and it seems unlikely to break, especially with gold recently hitting an all-time high.GoldCurrently trading near $2787, Spot gold fell to as low as $2,772 this morning after prices made a record peak at $2,817.23 on Friday. The pullback came as the U.S. dollar strengthened on mounting fears of a global trade war following U.S. President Donald Trump’s sweeping tariff measures. Over the weekend, Trump levied 25% tariffs on Canadian and Mexican imports and 10% on goods from China starting Feb. 4. Meanwhile, Canada and Mexico ordered retaliatory measures, while China said it would challenge tariffs at the World Trade Organization and take unspecified countermeasures.

While tariff announcements should have typically driven gold prices higher due to increased safe-haven demand, a stronger dollar and expectations of fewer rate cuts are exerting pressure. Citi stated further tariff escalation should be bullish for the metal and will likely push prices to $3,000 per ounce. Meanwhile, J.P. Morgan noted that bearish contagion from equities could weigh on the metal in the immediate near-term, but disruptive tariffs continue to fuel a medium-term bull case for bullion.

Immediate support is seen near the 50-day SMA at $2769 and resistance at $2807-2817.  Meanwhile, below $2750, the next strong support is seen near the $2725-30 zone.

Gold prices in the UAE are as follows:
24 carat – AED 336.75
22 Carat – AED 311.75
21 Carat – AED 301.75
18 Carat – AED 258.75

Last Updated on 2 months by News Desk 1