Gold’s breakout stuns markets

After the Easter break, markets opened higher, hinting at a possible rebound. The positive momentum in futures suggests cautious optimism, although traders remain alert to policy risks and corporate earnings surprises that could shake sentiment.

Investors here are now navigating a backlog of global risk factors, from trade disruptions to central bank speculation.

Currencies

The Japanese yen leads gains across the currency board, benefiting from a cautious global tone and rising risk aversion.

Meanwhile, the US dollar remains on the back foot, weighed down by growing uncertainty around Federal Reserve leadership and future policy direction. Jerome Powell’s potential dismissal has stirred fresh doubts, adding to USD weakness.

Antipodean currencies are holding steady, while the euro trades slightly lower as it searches for a clear driver.

Commodities

Gold briefly breached the $3,500 level early Tuesday before pulling back on technical profit-taking. Despite the dip, the precious metal remains underpinned by strong fundamentals. Safe-haven demand is being fueled by persistent concerns over global trade frictions and speculation that the Federal Reserve could accelerate rate cuts. The dollar’s decline and the erosion of faith in US economic stewardship continue to tilt the balance in favor of the metal.

Oil Markets
Crude oil prices are modestly higher in early European trade. West Texas Intermediate (WTI) is trading at $62.7 per barrel, while Brent crude is holding firm at $65.95. Gains remain measured, but underpinned by ongoing supply risks, OPEC+ discipline, and geopolitical tensions in key producing regions. While demand signals remain mixed, the broader backdrop continues to support a slow grind higher in prices.