Gold Overview
On Wednesday, gold soared over $100 intraday, briefly approaching the $3,100 mark. It closed up more than 3%, marking its largest single-day gain since March 2020. Spot gold ended the day up 3.27% at $3,079.99 per ounce.
Rising global trade uncertainty fueled the rally. According to Xinhua News Agency, China’s State Council Tariff Commission announced that, effective 12:01 PM on April 10, 2025, tariffs on US imports will rise from 34% to 84%, following State Council approval.
Bart Melek, Head of Commodity Strategy at TD Securities, noted: “Ultimately, gold is still seen as a hedge against instability. Tariff concerns are growing, and with inflation expectations rising, yields are moving higher, boosting gold prices.”
Additionally, the Federal Reserve minutes released Wednesday showed that policymakers agreed the Trump administration’s tariff policies were increasing economic uncertainty. As a result, they supported maintaining a pause on rate cuts. Officials also warned that tariffs could have a more prolonged impact on inflation.
Gold – Technical Outlook
Gold opened strong in the Asian session, with bulls driving a one-sided rally. After stabilizing around $2,972 during the Asia-Europe session, it surged higher in the afternoon and broke above $3,054. The momentum continued into the US session, briefly piercing the $3,100 level. The daily chart shows a bullish engulfing candle with a strong rebound from earlier lows, reclaiming the $3,050 zone and returning to bullish territory.
Gold – Today’s Focus
Prefer buying on pullbacks; consider shorting at resistance levels.
- Key Resistance: $3,100–$3,110
- Key Support: $3,065–$3,055
Crude Oil Overview
Crude oil futures staged a dramatic rebound on Wednesday, recovering from a sharp drop of over 7% earlier in the day to close up more than 4%, driven by a surprise announcement from Trump delaying some tariffs.
- WTI May Crude Futures: +4.65%, closing at $62.35/barrel
- Brent June Crude Futures: +4.23%, closing at $65.48/barrel
According to the Shanghai Securities Journal, US President Trump announced on social media that the US would temporarily delay the implementation of new tariffs on some countries, reducing most tariffs to 10% for a 90-day period, effective immediately. He also posted that it is now a “good time to buy.”
Additionally, lower-than-expected US crude inventory growth offered support. Data from the EIA showed crude stockpiles rose by 2.6 million barrels to 442.3 million barrels, below the forecasted 4.0 million barrels. Imports increased while exports dropped to their lowest level since January.
Oil – Technical Outlook
Crude prices briefly retreated during the Asian and European sessions, holding support at the $55 level before rebounding. Fueled by the tariff news, prices surged past $60, hitting a high near $62. The daily candle formed a strong bullish reversal, with solid support building around $55, suggesting a potential shift back to a bullish trend.
Oil – Today’s Focus
Prefer selling on rebounds; consider buying on dips.
- Key Resistance: $65.0–$66.0
- Key Support: $60.0–$59.0
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