Market Headlines:
- Gold heads for nearly 2% weekly decline — sharpest drop in two months
- Oil falls for second consecutive week ahead of expected OPEC+ output hike
- Trade tensions and tariff uncertainties maintain safe-haven demand
- Traders await key US PCE inflation data release
🥇 Gold Under Technical Pressure
Gold lost ground Friday, putting the precious metal on course for its sharpest weekly slide in almost two months as traders hesitated before key US inflation readings. Gold futures (Aug 2025) dropped up to 0.8% during morning trade.
Current Metrics:
- Spot price: $3,300 per ounce (-0.5%)
- Weekly decline: nearly 2%
- Key resistance level: $3,328
Kelvin Wong, senior analyst at Oanda Asia Pacific, attributed the current sell-off to technical factors: “The price action in gold has twice failed to break above the key near-term resistance level of $3,328 — both in the U.S. session yesterday and again early in the Asian session today.”
⛽ Oil Declines for Second Straight Week
Crude oil prices edged lower for the second consecutive week as traders braced for another OPEC+ output hike expected at Saturday’s meeting.
Current Prices:
- Brent crude: $63.94 per barrel (-0.33% or -21 cents)
- WTI crude: $60.72 per barrel (-0.36% or -22 cents)
- Weekly decline: approximately 1.3% since Monday
JPMorgan analysts note the global surplus has increased to roughly 2.2 million barrels per day, a gap that may force prices lower to restore balance. The bank predicts crude will trade near current levels before easing into the high $50s by year-end.
🌍 Geopolitical Uncertainty Persists
Markets were unsettled after a federal appeals court Thursday granted Trump temporary reprieve from a decision threatening to remove much of his planned tariffs.
China Tensions Resurface:
- Treasury Secretary Scott Bessent described Beijing talks as “a bit stalled”
- White House to cancel some Chinese student visas
- Curbs on chip-design software sales to Chinese firms
- Companies told to halt ethane and butane shipments to China without licenses
📈 Safe-Haven Status Intact
Despite recent declines, Goldman Sachs confirmed that gold will remain part of long-term portfolios as defense against rising prices, alongside crude oil.
Demand Outlook: JPMorgan noted global oil demand ticked up last week thanks to strong U.S. Memorial Day travel, estimating monthly demand growth at about 400,000 barrels per day as of May 28.