Oil Faces Worst Monthly Drop Since 2022 Despite Steadying Prices

Oil prices remain steady as traders monitor two key situations: the US-China trade tensions and US-Iran diplomatic talks. Brent crude trades near $67 after China announced plans to support exporters affected by US tariffs while maintaining confidence in reaching its 5% economic growth target. The oil market faces its worst monthly performance since 2022 due to fears that trade disputes will hurt demand, compounded by OPEC+ increasing production. Upcoming US economic data and oil company earnings reports could provide direction for the market, while progress in US-Iran nuclear talks continues despite a deadly explosion at a strategic Iranian port.

100 Days In: Trump’s ‘Strategic Uncertainty’ on Tariffs Leaves Markets Guessing

President Trump’s first 100 days back in office have been marked by significant uncertainty around tariffs, which appear to be his administration’s top economic priority but also the biggest drag on his popularity. Despite promises of quick deals, negotiations with foreign nations remain unclear, with Trump and his team offering contradictory statements about progress. Treasury Secretary Scott Bessent recently described this approach as “strategic uncertainty,” highlighting a pattern that extends beyond trade to other policy areas where progress has been slower than initially promised.

China’s Q1 Gold Consumption Dips 6% While Investment Demand Surges 30%

High gold prices are reshaping China’s gold market, with Q1 2025 showing a 5.96% decline in overall consumption to 290.492 metric tons. Consumers are pivoting away from gold jewelry (down 26.85%) toward investment products like gold bars and coins (up 29.81%), seeking safe-haven assets amid economic uncertainty. Despite consumption changes, China’s gold production increased modestly, with total output reaching 140.830 tons when including gold from imported materials.

Despite Recent Pullback, Analysts Remain Bullish on Gold’s Long-Term Prospects

Gold has retreated about 6.5% from its all-time high as investors responded to signs of de-escalation in US-China trade tensions. This pullback follows President Trump’s statement about substantially cutting tariffs on China, which triggered a recovery in global stock markets. While gold has been a top performer in 2025—rising more than 25% on safe-haven demand and dollar weakness—analysts identify several short-term risks: – fading risk-off sentiment – technical overbought signals – potential slowdown in purchases – and changing liquidity conditions Despite these challenges, many experts believe gold remains positioned for continued long-term strength due to persistent global economic uncertainties.

Gold Pulls Back 6% as Markets Stabilize Following Tariff Threats

Gold prices have fallen about 6% from their recent record high of $3,500 per ounce as trade war tensions ease. The market has calmed following President Trump’s April 2 tariff announcements, with Asian economies making progress in trade talks. Analysts suggest the selloff accelerated as traders recognized the rally had become overextended. Hedge fund managers have reduced their gold positions to the lowest level in 14 months, and options trading patterns indicate an overheated market. Despite this correction, gold has still gained about 25% this year, supported by ETF inflows, central bank purchases, and speculative demand in China, even as […]