Support
Gold faces resistance near $2,900
Investor sentiment remains fragile due to uncertainties in global trade policies and economic stability, prompting some safe-haven demand
Gold hovers below $2,900 amid market cautio
Oil slips on trade worries
Japan’s fourth-quarter GDP growth revised downward
Commodities
Gold (XAU/USD) remains subdued beneath the $2,900 threshold in the Asian trading session on Tuesday, failing to sustain a modest rebound from its weekly low near $2,880. Investor sentiment remains fragile amid ongoing concerns about global trade policies and economic stability, which has driven some demand for safe-haven assets.
Persistent selling pressure on the US Dollar (USD), fueled by speculation that economic headwinds from trade tariffs could push the Federal Reserve toward multiple rate cuts this year, has provided some support for gold. However, the metal struggles to gain significant traction, as the technical breakdown below recent support levels keeps market participants cautious ahead of this week’s key US inflation data release.
Meanwhile, WTI crude oil continues its downward trajectory, trading near $65.45 in early Asian hours. Market sentiment is weighed down by concerns that US-imposed tariffs on key trading partners—including China, Canada, and Mexico—could slow global economic growth and curb energy demand. While President Donald Trump recently granted exemptions for certain North American goods under the USMCA agreement, tensions with China remain high, as Beijing retaliated with tariffs on US agricultural imports.
Currencies
Japan’s fourth-quarter GDP growth was revised downward to 2.2% annually, below the preliminary estimate of 2.8%, while quarterly expansion slowed to 0.6% from an initial 0.7% estimate. Despite the weaker data, the Japanese Yen (JPY) remains firm, as traders anticipate that the Bank of Japan (BoJ) will maintain its current policy stance in the upcoming March 18-19 meeting.
Market expectations remain divided, with some pricing in a potential BoJ rate hike as early as May, given signs of persistent inflationary pressures and hopes that last year’s substantial wage increases will continue into 2025. The divergence in monetary policy outlooks between the BoJ and the Federal Reserve suggests further downside potential for USD/JPY in the near term.
