Markets saw renewed momentum on Tuesday as both gold and oil prices climbed. Gold edged higher on safe-haven demand and soft US inflation data, while oil surged on the back of geopolitical pressure and President Trump’s latest stance on Iran.
Gold Market Recap
Spot gold closed at $3,249.86 per ounce, up 0.47% on the day. The move came as buyers stepped in at lower levels, while several macro factors added fuel to the recovery:
- April CPI in the US came in at just +0.2%, missing expectations of +0.3%, reinforcing a softer inflation narrative.
- Rate cut expectations from the Fed took a breather, though markets still eye a possible move in September.
- The US dollar slipped from one-month highs, giving gold extra lift.
- Geopolitical tensions continue to support safe-haven demand.
“This inflation data won’t derail the Fed’s easing trajectory,” said Jim Wyckoff, senior analyst at Kitco Metals. “But investors are already positioning for a potential inflation uptick later this year due to tariffs—gold remains a solid hedge.”
Gold – Technical Snapshot
Gold opened with a dip but found solid support around $3,216, then rebounded sharply through $3,240 and briefly tested $3,265 before closing near $3,250. The session closed with a small bullish candle, signaling steady demand.
Gold – Strategy Outlook
Stick with a sell-on-rebound approach for now.
- Short-term resistance: $3,265
- Short-term support: $3,205–$3,210
Crude Oil Recap
Oil prices rallied 2.8%, closing just shy of $64 per barrel, marking a continued rebound from year-to-date lows. The latest push came after President Trump threatened to intensify sanctions on Iranian oil exports if nuclear talks fail.
Adding to the bullish tone:
- US inflation data was softer, helping boost risk appetite.
- Trade tensions appeared to ease slightly, improving sentiment.
“So far, tariffs haven’t hit demand meaningfully,” noted Jon Byrne of Strategas Securities.
Trump’s first stop in the Middle East was Saudi Arabia, a key player in OPEC+. Eyes are now on the upcoming June 1 OPEC+ meeting, where increased production is on the table—raising concerns about potential oversupply later this year.
Crude Oil – Technical Snapshot
Crude held firm above $61.60 support and accelerated higher into the US session, breaking above $63.60 and closing strong near $63.90. This marks four straight sessions of bullish closes.
Crude Oil – Strategy Outlook
Momentum favors a buy-on-dip strategy.
- Short-term resistance: $60.80–$61.00
- Short-term support: $62.00–$62.50
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