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Gold Strengthens on Market Turmoil; Oil Sinks to Three-Month Low

Gold Overview On Tuesday, gold extended its rally as escalating trade tensions following President Trump’s new tariffs weakened the US dollar, boosting safe-haven demand. Spot gold closed 0.83% higher at $2,917.64 per ounce. Financial markets experienced heightened volatility after Trump’s 25% tariffs on Mexican and Canadian imports took effect. In response, both countries announced retaliatory tariffs on US goods. David Meger, Director of Metals Trading at High Ridge Futures, stated: “The implementation of tariffs has created significant uncertainty, driving demand for safe-haven assets like gold and silver while also pressuring the US dollar, further supporting gold prices.” The US dollar fell 0.6% to a three-month low, making gold more attractive to foreign investors. Market focus now shifts to the upcoming ADP employment report, which could provide insight into the US labor market and the Federal Reserve’s rate-cut trajectory. Gold – Technical Analysis Gold tested support at $2,880 before rebounding sharply. It surged past $2,900 and hit resistance near $2,927, before consolidating into the close.

Key resistance levels: $2,927–$2,932 Key support levels: $2,900–$2,895 Crude Oil Overview Crude oil extended its losses on Tuesday, with WTI hitting its lowest level since November, as OPEC+ confirmed its April production hike and traders worried that intensifying trade tensions could weigh on global demand. WTI crude fell 0.16% to $68.26 per barrel, while Brent crude declined 0.81% to $71.04 per barrel. On Monday, OPEC+ announced it will gradually restore 138,000 barrels per day of production starting in April. The International Energy Agency (IEA) previously warned that even if OPEC+ held production steady, global oil markets could face a surplus in 2025. The output increase added to concerns of supply exceeding demand. Meanwhile, Trump’s tariff hikes and the retaliatory measures by key trading partners have raised fears of a global economic slowdown, which could further weaken oil demand. Crude Oil – Geopolitical Developments The market remains focused on the Russia-Ukraine conflict. Ukrainian President Zelensky expressed regret over his recent meeting with President Trump and signaled readiness for peace talks under US leadership. Additionally, reports indicate that Trump has ordered a suspension of all US military aid to Ukraine. Crude Oil – Technical Analysis Oil prices remain under bearish pressure, with WTI breaking below $67, briefly testing $66.7 before staging a weak rebound.

Key support levels: $66.7–$66.2 Key resistance levels: $68.8–$69.3

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This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it.

Publication date:

2025-03-05 14:34:08 (GMT)

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