Gold rose to approximately $2,990 per ounce on Monday, hovering near record highs as strong safe-haven demand persisted amid trade tariff uncertainty and geopolitical tensions. The U.S. reaffirmed its commitment to striking Yemen’s Houthis until they cease attacks on Red Sea shipping, adding to market unease. Concerns over an escalating trade war also weighed on sentiment, with the U.S. and its major trading partners exchanging fresh tariffs threats. Meanwhile, gold demand remained robust, bolstered by continued purchases from ETFs and central banks, including China, which extended its gold acquisitions for a fourth consecutive month. Investors now turn their attention to a series of central bank policy meetings later this week, particularly the U.S. Federal Reserve’s decision. The Fed is widely expected to keep interest rates steady amid lingering uncertainty over President Donald Trump’s economic policies, with markets anticipating only two rate cuts this year.
WTI crude oil futures rose to around $67.8 per barrel on Monday, extending gains from the previous session, after top oil importer China promised new measures to boost consumption, and the U.S. ordered attacks on Yemen's Houthis. Beijing on Sunday unveiled plan on special initiatives to revive consumption, including raising people's incomes and establishing a childcare subsidy scheme. China’s better-than-expected economic data released on Monday also pointed to the growing strength of the nation’s recovery. Additionally, investors are worried about potential supply disruptions after the U.S. vowed to keep hitting Houthis until shipping attacks in the Red Sea stop. Also supporting prices were diminishing prospects of a swift end to the Ukraine war that could bring back more Russian energy supplies to Western markets. U.S. President Trump and Russian President Putin are expected to hold talks this week as the U.S. tries to broker a ceasefire in the ongoing conflict.
Heating oil futures in the US fell toward $2.15 per gallon in March, reaching a three-month low, as rising global oil supply, trade uncertainties, and weakening demand weighed on prices. OPEC+ plans to increase output by 138,000 barrels per day in April, with Kazakhstan surpassing its quota, further boosting global supply and placing a cap on crude oil feedstock costs. Uncertainty surrounding US tariffs on Canadian oil has added volatility, raising concerns about potential disruptions to US supply and refining. Meanwhile, increased US natural gas production, combined with forecasts for milder weather in the next two weeks, is adding further pressure on heating oil prices, as natural gas competes for market share. Additionally, distillate stocks fell by 1.6 million barrels for the week ending March 7th, surpassing market expectations of a 1.3 million barrel decline, while heating oil inventories decreased by 183,000 barrels, marking the second consecutive drop.
