Gold Steady, Oil Slips, Crypto Flat
Gold prices moved within a narrow range during early Asian trading on Monday, as risk appetite showed signs of recovery amid speculation about a possible meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
Despite this, the yellow metal remained supported by safe haven demand, underpinned by ongoing doubts over the U.S. economy—especially after Trump doubled tariffs on steel and aluminum to 50%, effective Monday.
Geopolitical tensions, including intensified military operations between Russia and Ukraine and failed nuclear talks between the U.S. and Iran, further drove investors toward safe assets.
U.S. stock index futures showed minor movement late Sunday, with markets awaiting potential dialogue between the U.S. and China that could revive stalled trade negotiations.
Investors are also digesting Trump’s decision to hike tariffs on imported steel and aluminum—a move that signals higher production costs for U.S. manufacturers starting this week.
In currency markets, most Asian currencies traded in tight ranges, while the dollar held steady as expectations rose for a potential U.S.-China summit. However, optimism faded after Trump’s tariff hike raised fresh concerns about the business climate.
The Australian dollar remained flat after weaker-than-expected GDP data, increasing the likelihood of interest rate cuts by the Reserve Bank of Australia later this year.
Oil prices dipped slightly on Monday after two strong sessions, as traders assessed the potential for tighter crude supply in the coming months. Rising geopolitical tensions—particularly between Russia and Ukraine—and signs of a collapse in U.S.-Iran nuclear negotiations kept oil markets on edge.
Meanwhile, U.S. data showed a sharper-than-expected drop in crude inventories last week, signaling strong fuel demand heading into the summer season. North American oil supply could also face disruption due to ongoing wildfires in Canada’s oil-rich Alberta province.
Broader cryptocurrency prices remained stable within tight ranges, lacking strong trading cues. While crypto markets aren’t directly impacted by tariffs or traditional macro shocks, speculative sentiment remains fragile amid global economic uncertainty.
Conclusion:
As markets juggle between geopolitical risks, economic doubts, and shifting trade dynamics, traders remain cautious—turning to gold and oil for stability, while watching for any signs of a breakthrough in U.S.-China relations.
