Gold prices rose to the highest level in two weeks today, Tuesday, as fears of US President Donald Trump’s plans regarding customs duties led to the promotion of the demand for metal, which is considered a safe haven, and oil prices are increased driven by the desire to seize deals after the prices have declined recently.
gold
Gold prices rose to the highest level in two weeks today, Tuesday, as concerns about US President Donald Trump’s plans regarding customs duties led to the promotion of the demand for metal, which is considered a safe haven, while investors are also awaiting the Federal Reserve meeting (US Central Bank) tomorrow, Wednesday.
In the latest transactions, gold in instant transactions rose 1.4% to $ 3380 an ounce, after he recorded the highest level since April 22 earlier in the session.
US gold futures increased 1.92% to $ 3386.20.
“Gold prices witnessed a strong rise at the beginning of this week, with investors returning to the assets of safe haven to hedge against wallet fluctuations amid renewed concerns about Trump’s customs duties,” said the market analyst Yib John Rong.
On Sunday, Trump announced the imposition of 100% customs duties on all films produced outside the United States, but he did not have details about how these fees are applied.
He said yesterday that he intends to announce customs duties on medicines in the next two weeks.
This week, attention is directed to the Federal Reserve’s decision regarding the interest rate and the statements of its president, Jerome Powell, tomorrow, Wednesday, in an effort to indicates the interest track.
The US Central Bank has remained the interest rate in a range between 4.25% and 4.50% since December.
“Any references to the monetary facilitation may provide more support for gold, which enhances its broader bullish momentum,” said Rong.
It is expected that the Federal Reserve will keep interest rates unchanged, and this may be the last monetary policy meeting in which the result is settled due to Trump’s customs duties that cast an economic expectations.
Goldman Sachs said: “Reserve Council officials will want to see indications from the labor market and other data before the reduction (interest rates).
Reducing interest rates will support the yellow metal, which does not generate return and which represents a way to hedge in the face of political and financial turmoil.
As for other precious metals, its performance was as follows:
- Silver increased in instant transactions 1.67% to $ 33.02 an ounce.
- Platinum increased 1.4% to 979 dollars.
- Palladium rose 0.56% to 952.91 dollars.
Oil
Brent crude futures rose $ 2.22 a barrel or 1.34% to $ 61.56 a barrel, recording the first climb after 6 consecutive declines, and US West Texas Intermediate crude futures also increased 2.26% to $ 58.42 a barrel.
On Monday, the two standard crudes recorded their lowest levels since February 2021, driven by the decision of the OPEC Plus coalition, which includes the Organization of Petroleum Exporting Countries (OPEC) and its allies, at the beginning of the week to accelerate the pace of increased oil production for the second month in a row, as he decided to increase production in June by 411 thousand barrels per day.
“It is really surprising that we see this recovery this morning. But the price of $ 60 a barrel has a moral significance. When the price of oil decreases to below $ 60, you find people say: Well, this is a good price,” said Pierni Sheldroub, chief of primary commodity analysts, said.
Pointing from the expectations that production will exceed consumption, oil has lost more than 10% during 6 consecutive sessions, and has decreased by more than 20% since April when the trauma of customs recognition that Trump announced increased bets on the slowdown in the global economy.
The return of dealers in the Chinese market after an official holiday that lasted 5 days since May 1 to support prices today.
“China has returned to open today, and because it is the largest importer, it is likely that buyers were rushing to obtain oil at the current low levels (for prices),” said Priyanka Satshiva, the chief market analyst in Philip Nova.
Giovanni Stonovo, the primary commodity analyst at UBS, said that Saudi Arabia’s publication prices for its oil, which was published by Reuters on Monday, provided some support to the prices.
Data revealed an increase in the growth of the services sector in the United States, the largest oil consumer in the world, as well as the increase in orders.
“It seems that the slight recovery witnessed by oil prices today is a technical recovery more than the support of the market,” said Yip Rong, a market analyst at IG.
He added, “The ongoing favorable conditions, including the pivotal transformation in the OPEC Plus production strategy and the blurring surrounding demand amid the risks of American customs duties and reduce price expectations, still affect the price movement.”
Expectations
- Barclays reduced his expectations for the Brent crude price yesterday, Monday, $ 4 to $ 70 a barrel in 2025, and set his estimates for 2026 at $ 62 a barrel, noting “difficulties related to the basics of the market” amid the escalation of trade tension and the change of “OPEC Plus” its production strategy.
- Goldman Sachs also reduced his expectations for prices on Monday by two dollars and $ 3 per barrel, as his experts are now expecting another increase in OPEC Plus 400,000 barrels per day in July.
