Gold dips on recovering USD

Currencies

The EUR/USD pair slid toward 1.0480 during Monday's Asian session, reflecting a resurgence in the US Dollar. The greenback's recovery comes after its steepest weekly decline since November 2023, signaling a corrective bounce. However, broader market factors, including the Federal Reserve’s potential dovish pivot and subdued US Treasury yields, may restrain further USD gains.

Commodities

Gold prices faced selling pressure at the start of the week, pulling back from Friday’s peak near $2,786—its highest level since late October. The USD's modest recovery weighed on the non-yielding metal, though expectations of Federal Reserve rate cuts and falling bond yields provide a supportive backdrop for future dip-buying.

Silver prices faced headwinds as traders positioned themselves ahead of Wednesday's Federal Reserve policy decision. Additionally, concerns about potential inflationary effects from ongoing US trade policies add to market uncertainty.

Oil

West Texas Intermediate (WTI) crude oil prices declined to $73.90 per barrel during Monday's Asian trading session, reversing gains from the previous session. The downturn was driven by US President Donald Trump’s call for OPEC+ to reduce oil prices, aiming to curtail Russia's war-related revenues. Trump’s remarks suggested that lower oil prices could expedite the end of the conflict in Ukraine, but OPEC+ has yet to formally respond. Market participants remain cautious, as OPEC+ plans to raise production in April may influence price dynamics.

Market sentiment

The broader risk appetite deteriorated following Trump’s announcement of tariffs on all imports from Colombia, reviving fears of a global trade war. These developments, combined with expectations of further Fed rate cuts, have contributed to volatility across asset classes. Non-yielding assets like gold and silver are finding mixed support, while oil prices face additional geopolitical pressures.