Market Overview
On Tuesday, gold prices came under pressure as easing trade war tensions, a stronger US dollar, and rising Treasury yields weighed on the market. Spot gold briefly dipped below the $3,300 level before settling at $3,301.63/oz. Meanwhile, oil prices extended gains following another Houthi attack on commercial vessels in the Red Sea, with both WTI and Brent crude closing at their highest levels since June 23.
Gold Market Recap
Gold prices struggled on Tuesday as easing trade war risks, a stronger US dollar, and rising US Treasury yields increased pressure on the precious metal. Spot gold briefly broke below the key $3,300 mark during the session and ultimately closed down 1.05% at $3,301.63/oz.
Following Trump’s move to escalate the trade war on Monday, Japan and South Korea announced on Tuesday that they would seek talks with the US to mitigate the impact of large-scale tariffs planned for early August.
Peter Grant, Vice President and Senior Metals Strategist at Zaner Metals, commented: “As the July 9 deadline approaches, the Trump administration is ramping up pressure, refocusing market attention on trade tensions. However, some optimism around trade deals is lifting risk sentiment and adding downward pressure on gold prices.”
Meanwhile, short-term strength in the US dollar and higher bond yields further reduced gold’s appeal. On Tuesday, the US Dollar Index rose by 0.3% to 97.83, while the 10-year Treasury yield climbed to 4.435%, its highest level in over two weeks.
Gold – Technical Outlook
In Asian trading hours, gold made a minor attempt to rise but was capped at the $3,340 level before trending lower. During the European session, prices slid toward $3,320, hovering in a tight range. A rebound attempt in the US session was capped at $3,329, followed by a breakdown that briefly pushed prices to a session low near $3,287.
A weak bounce followed, and gold ultimately closed near the day’s low. The daily candlestick formed a bearish bar, suggesting that the sharp rebound seen the previous day failed to sustain. Prices continue to face resistance around the $3,340 level, exhibiting wide-range consolidation and tug-of-war between bulls and bears.
Gold – Today’s Outlook
- Strategy: Focus on shorting rebounds, with limited long positions on pullbacks.
- Resistance (Short-Term): $3,320–$3,330
- Support (Short-Term): $3,285–$3,275
Crude Oil Market Recap
On Tuesday, oil prices extended their upward momentum, supported by renewed geopolitical tensions after a Houthi attack on a commercial ship in the Red Sea. Both WTI and Brent crude settled at their highest levels since June 23.
- WTI August futures rose $0.40 (+0.59%) to $68.33/barrel
- Brent September futures gained $0.57 (+0.82%) to $70.15/barrel
The latest attack forced vessels carrying oil, LNG, and other energy products to reroute, raising shipping costs. Reports indicate that the Houthis attacked the cargo ship True Confidence C at around 8 p.m. local time on July 7.
Phil Flynn, analyst at Price Futures Group, stated: “Expectations of lower US oil output are supporting prices. Combined with the copper tariff announcement and growing tensions in the Red Sea, oil is rallying alongside other commodities.”
The US Energy Information Administration (EIA) recently revised its forecast, stating that due to falling prices and slowed drilling activity, US oil output in 2025 is now expected to be lower than previously projected. In addition, President Trump announced plans to impose a 50% tariff on copper imports to boost domestic production.
Crude Oil – Technical Outlook
Oil prices found support at the $67.30 level before climbing steadily. During the US session, prices briefly broke above $68.90 before pulling back slightly to close near session highs. The daily candlestick formed a modest bullish breakout, suggesting a short-term stair-step rally supported by the $67 level.
Crude Oil – Today’s Outlook
- Strategy: Focus on buying on dips, with limited short positions on rebounds.
- Resistance (Short-Term): $70.00–$71.00
- Support (Short-Term): $66.00–$65.00
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