Brent crude oil futures surged more than 2% to above $65 per barrel on Monday, reaching a two-week high, after the US and China agreed to pause most tariffs on each other's goods. This major trade breakthrough signaled a cooling of tensions between the world's two largest oil consumers, reducing risks to oil demand. Reports indicated both nations agreed to a 90-day pause and a significant reduction in tariff levels, with each side cutting reciprocal tariffs by 115%. Meanwhile, exerting bearish pressure on oil, OPEC+ plans to accelerate output hikes in May and June. Also, a potential...
The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, catches aggressive bids at the start of a new week and rallies to over a one-month top, around the 101.35-101.40 region during the early European session. The latest leg of a sudden spike over the past hour or so followed the highly anticipated US-China joint statement on the first round of trade talks held over the weekend in Geneva, Switzerland. The US will modify the application of the rate of duty on articles of China for an initial period of 90 days, and now only a 10% base rate will be applied....
Gold dropped 3% to a more than one-week low on Monday after the U.S. and China said they have agreed to a deal to slash reciprocal tariffs, sending the dollar higher and denting the safe-haven metal's appeal. Spot gold was down 3% at $3,224.34 an ounce, as of 0812 GMT, its lowest since May 1. U.S. gold futures slipped 3.5% to $3,228.10. "The de-escalation of tensions between China and the U.S., with tariffs being reduced for 90 days, is reducing the demand for safe haven assets like gold," said UBS analyst Giovanni Staunovo. "Near-term prices are likely to stay volatile. But higher...