Volatility spikes in the commodities market, while gold extends its gains by another 2% 📈
Tuesday’s session in financial markets is marked by significant gains in industrial commodities and precious metals. At the time of writing, WTI crude oil prices are up over 4%, while gold prices are gaining 2%.
From a macroeconomic perspective, these moves may seem puzzling — or even contradictory — to many. Wall Street is under pressure due to continued uncertain remarks from White House officials regarding the economy and tariffs, which in theory could justify the rise in gold prices. On the other hand, we’re seeing a strong surge in oil prices, which in its own way reflects economic demand and could imply risks of triggering a global slowdown.
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Gold is having a record year, already up over 26% YTD. In the past 25 years, the highest annual return for gold was 30.2% — only slightly more than the current performance in just four months.
Gold broke out of its ascending channel a few weeks ago and remains above the upper boundary. The recent drop in gold turned out to be just a correction, and prices are now heading toward historical highs above $3400 per ounce. The nearest support level is currently just above $3200, while the resistance lies in the $3450–$3500 per ounce zone.
OIL.WTI (daily interval)
Oil is up 4.10% today after completing a double bottom formation near a support zone. The next target for the current move is the $61–62 area, which marked the last rebound’s slowdown level. On the downside, support remains in the $57–59 per barrel range.
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