Gold Sets New High for 10th Time, Oil Prices Continue Uptrend

2025-02-21 | Brent Crude , Commodities , Daily Analysis , Daily Insight , Gold , Oil , Precious Metals , WTI Crude Oil

Gold Sets New High for 10th Time, Oil Prices Continue Uptrend

Market Recap

Gold surged to $2,954.93, marking its 10th record high of the year, before retreating to close at $2,939, driven by Trump’s tariff announcement on lumber and rising safe-haven demand. Meanwhile, oil extended gains for the third consecutive session, supported by declining U.S. fuel inventories, Russian supply disruptions, and a weaker dollar.


Gold Overview

Gold soared to a new all-time high on Thursday, as investors sought safety amid rising trade tensions. U.S. President Donald Trump announced that lumber tariffs could be implemented around April 2, fueling economic uncertainty.

  • Trump’s Trade Policy: On February 19, Trump revealed plans to impose tariffs on cars, chips, pharmaceuticals, and lumber, with lumber tariffs set at 25%.
  • Market Reaction: Investors flocked to gold as a hedge against inflation and trade instability. However, Treasury Secretary Besant ruled out re-evaluating gold reserves, leading to a pullback in gold’s rally.
  • Dollar & Treasury Yields: A 0.78% drop in the U.S. dollar index (hitting a 2-month low at 106.35) and a decline in 10-year Treasury yields (down 3.32 basis points to 4.50%) also helped support gold prices.

Gold initially rallied past $2,950 but faced selling pressure at $2,954, leading to a pullback to $2,930 before stabilizing. The bullish trend remains intact, but a short-term pullback could be expected.

Gold Sets New High for 10th Time, Oil Prices Continue Uptrend
(Gold Futures, 1-day chart) 
  • Key Resistance: $2,955-$2,960
  • Key Support: $2,923-$2,918

Oil Overview

Oil prices rose for the third straight day, bolstered by declining U.S. fuel inventories, supply disruptions in Russia, and a weaker dollar.

  • EIA Report: U.S. crude inventories rose by 4.63M barrels, slightly above forecasts, but gasoline and distillate stockpiles fell, signaling tighter fuel supplies.
  • Russia & Ukraine Conflict: Russian attacks on Ukraine’s gas infrastructure intensified concerns about energy supplies.
  • Potential Headwinds: Trump’s tariff policies could impact oil demand, as higher import costs may weaken global trade and economic growth.

Oil rebounded from $71.7, climbing past $72.5 and testing $73.1 before encountering resistance.

  • Key Resistance: $73.8-$74.3
  • Key Support: $71.7-$71.2
Gold Sets New High for 10th Time, Oil Prices Continue Uptrend
(Light Crude Oil Futures, 1-day chart) 

Despite recent gains, oil remains under pressure below the 10-day moving average at $73.5, indicating that short-term rebounds could be limited.


Risk Disclosure

Securities, Futures, CFDs and other financial products involve high risks due to the fluctuation in the value and prices of the underlying financial instruments. Due to the adverse and unpredictable market movements, large losses exceeding your initial investment could incur within a short period of time.  
Please make sure you fully understand the risks of trading with the respective financial instrument before engaging in any transactions with us. You should seek independent professional advice if you do not understand the risks explained herein. 

Disclaimer

This information contained in this blog is for general reference only and is not intended as investment advice, a recommendation, an offer, or an invitation to buy or sell any financial instruments. It does not consider any specific recipient’s investment objectives or financial situation. Past performance references are not reliable indicators of future performance. Doo Prime and its affiliates make no representations or warranties about the accuracy or completeness of this information and accept no liability for any losses or damages resulting from its use or from any investments made based on it. 
The above information should not be used or considered as the basis for any trading decisions or as an invitation to engage in any transaction. Doo Prime does not guarantee the accuracy or completeness of this report and assumes no responsibility for any losses resulting from the use of this report. Do not rely on this report to replace your independent judgment. The market is risky, and investments should be made with caution. 

Market AnalysisIconBrandElement

article-thumbnail

2025-03-14 | Market Analysis

US Market Sinks as Tech Stocks Drag Nasdaq Down 2%

US market tumbles as tech stocks lead a broad selloff, dragging the Nasdaq down 2%. Investors react to economic concerns and inflation risks.

article-thumbnail

2025-03-14 | Market Analysis

Gold Hits New Record Near $2,990, Crude Oil Drops Over 1%

Gold soared to a new record near $2,990 as uncertainty over Trump’s tariff policy and Fed rate cut bets fueled demand. Crude oil fell over 1% on weaker demand

article-thumbnail

2025-03-13 | Market Analysis

US Stocks Struggle as CPI Inflation Slows in February

US stocks struggle as the Dow falls again, while cooling February CPI lifts hopes for Fed rate cuts. Tech stocks lead gains amid inflation slowdown.