Gold set to gain further on trade jitters and US fiscal concerns; oil and metals face selling pressure

Gold prices are surging amid escalating trade tensions and growing concerns over the U.S. fiscal landscape. Last week, MCX Gold Futures opened with a significant gap up on Monday and sustained its upward trajectory, closing at Rs 96,400 per 10 gram, marking the second highest weekly close on record. This bullish trend in gold reflects investors' flight to safe-haven assets as uncertainty looms over global trade dynamics and potential fiscal challenges in the United States. Conversely, the commodities market is witnessing a contrasting scenario for oil and metals, which are under selling pressure. The ongoing trade jitters have dampened demand prospects for these industrial commodities, causing a shift in market sentiment. Oil prices have been particularly volatile, influenced by fluctuating global demand forecasts and geopolitical tensions. Similarly, base metals are experiencing a downturn as traders reassess their positions amid a complex economic backdrop. Market analysts suggest that while gold may continue its upward trend, oil and metals could face persistent headwinds unless there is a resolution to trade disputes and clarity on fiscal policies. Investors are closely monitoring developments in these areas, which could significantly impact commodity markets in the coming weeks. As uncertainties persist, market participants remain cautious, navigating through a challenging landscape marked by both opportunities and risks.

— Authored by Next24 Live