On Wednesday, spot gold traded near $4,344 per ounce during Tuesday’s session. Gold rebounded and is on track to record its largest annual gain since 1979, supported by expectations of Federal Reserve rate cuts, persistent geopolitical tensions, strong central bank gold purchases, and sustained inflows into gold ETFs.
Meanwhile, WTI crude traded around $57.92 per barrel. Oil prices were largely steady after choppy trading, as investors continued to assess supply risks stemming from stalled Russia–Ukraine peace efforts and escalating tensions in Yemen, while persistent global oversupply capped upside momentum.
Gold
As of Tuesday, spot gold is up around 66% year to date, driven by a powerful combination of factors including expectations for Fed rate cuts, ongoing geopolitical uncertainty, robust central bank demand, and strong inflows into gold ETFs.
Peter Grant, Vice President at Zaner Metals, noted that while profit-taking emerged on Monday, overall market sentiment remains constructive, with rising geopolitical risks continuing to provide underlying support for precious metals.
Silver delivered an especially strong rebound, surging 7.3% on Tuesday to $77.48 per ounce. Earlier in the week, silver had briefly touched a record high of $83.94 per ounce, before suffering its largest single-day decline since August 2020. On a full-year basis, silver prices have soared 168%, fueled by its inclusion on the U.S. critical minerals list, ongoing supply shortages, and rising industrial and investment demand.
Technical outlook:
Gold has entered a short-term consolidation range between $4,400 and $4,300, with near-term momentum shifting from strong to softer. Initial support is seen around $4,320–4,325, with key volume support at the psychological $4,300 level. On the upside, resistance is concentrated near $4,380–4,400.
Early-session weakness could trigger another test of the lower support zone. Chasing prices is not recommended at this stage; instead, gold should be viewed within a broader range-bound structure. From a tactical perspective, short positions are only favored near $4,430, or on a confirmed break below $4,300, followed by downside continuation.
If consolidation persists for an extended period or selling accelerates sharply, the $4,550 area could be confirmed as a medium-term top, opening the door for a deeper corrective phase.
Today’s Focus:
Trading strategy favors buying on pullbacks, with selling on rallies as a secondary approach.
- Immediate resistance: $4,380–4,400
- Immediate support: $4,315–4,325
Oil
Oil prices were broadly stable on Tuesday, as investors weighed potential supply risks from delayed Russia–Ukraine peace talks and escalating tensions in Yemen against the backdrop of a still-oversupplied global oil market.
At the close, February Brent crude edged down 0.03% to $61.92 per barrel, while WTI crude slipped 0.22% to $57.95 per barrel. In the previous session, both benchmarks had rallied more than 2%, driven by reports of Saudi airstrikes in Yemen and Russia’s accusations that Ukraine targeted the Russian president’s residence.
On the geopolitical front, Russia claimed Ukraine attacked President Vladimir Putin’s residence and indicated it may adopt a tougher stance in peace negotiations. Ukraine denied the allegations, saying they were intended to undermine talks. Dennis Kissler, Senior Vice President of Trading at BOK Financial, said that a delayed peace agreement could provide near-term support for oil prices, though he emphasized that the actual impact on exports remains limited for now.
From a technical perspective, oil prices rebounded modestly after testing lows near $57.60, with intraday highs around $58.50. Overall, prices remain in a bottoming consolidation pattern, but the broader trend still leans bearish.
Today’s Focus:
Trading strategy favors buying on dips, with selling on rebounds as a secondary approach.
- Immediate resistance: $58.5–59.5
- Immediate support: $56.0–55.0
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