Gold Hits Fresh Record High as Trade Concerns Drive Safe Haven Demand

Gold surged above $3,100/oz for the first time at the beginning of the week, setting a new record high. This comes amidst escalating trade tensions and economic uncertainty, propelling gold to be one of the best-performing commodities this year with a 19% increase year-to-date.

President Trump’s trade policies have been a major factor in the rise of gold prices in 2025, with the uncertainty surrounding trade and tariffs continuing to support the precious metal’s value.

On the other hand, copper is experiencing a retreat from its nine-month high due to broader risk-off sentiment in the markets. The White House’s upcoming tariff announcement is adding to the pressure on industrial metals like copper, especially in the context of slowing global growth.

Oil Prices Under Pressure

Oil prices opened lower as ICE Brent crude extended its declines, hovering around $73.5/bbl. This drop follows President Trump’s comments on considering secondary tariffs on Russian oil if certain conditions are not met.

Drilling activity in the US has also slowed down, with the number of active oil rigs decreasing, indicating a downward trend in oil production. This, coupled with other factors, is keeping oil prices under pressure.

Agriculture Sector Faces Challenges

CBOT wheat prices have been on a downward trend due to supportive weather conditions that are expected to improve crop yields in key growing regions. However, trade tensions and geopolitical factors continue to impact the agricultural sector, with speculators adjusting their positions accordingly.

Overall, the current market conditions are influenced by a mix of trade uncertainties, geopolitical tensions, and economic factors, all of which play a role in shaping commodity prices. Investors and traders need to stay informed and cautious in navigating these volatile markets to make informed decisions.