Middle East tensions ease, both gold and crude oil come under pressure

Gold is a market-recognized safe-haven asset. Previously, with Middle East tensions staying high, funds poured into gold in large quantities to avoid geopolitical risk, continuously propping up gold prices as they rose.

Now that the conflict has eased, market panic over a large-scale regional war quickly dissipates. Safe-haven funds shift out of the market, gold prices lose their key upward support, and the trading trend gradually weakens.
The Middle East holds the world’s core oil production capacity. Previously, the biggest bullish argument in the market was concern that an escalation of the conflict would disrupt oil transportation and production, tightening supply and pushing oil prices higher—thus creating a safe-haven premium.

With the airstrike plan put on hold, the risk of supply disruptions has been greatly reduced. The favorable logic that supported oil prices to rise has therefore been directly weakened, leaving crude oil bulls without their core driving force.

Combined with the current global industrial commodities demand that is generally weak overall, demand for refined oil and industrial raw materials has not shown a clear rebound. Under dual pressure from both supply and demand, it is difficult for oil prices to sustain a continuous uptrend, and the rebound strength is limited.#美国对60个经济体加征关税