Oil prices edged higher on Tuesday, buoyed by U.S. President Donald Trump’s suggestion of temporary tariff relief for the auto industry. WTI crude futures rose to around $61.80 per barrel, up 0.18%, while Brent crude gained 0.34%, amid easing concerns around global trade tensions.
On Monday, President Trump signaled that the White House is considering a temporary exemption from the 25% tariffs on auto imports to allow manufacturers time to reconfigure supply chains. The announcement follows earlier exemptions for tech products, aimed at reducing the burden of reciprocal tariffs.
The analysis by Vijay Valecha, Chief Investment Officer, Century Financial, mentioned: Further supporting oil markets, Chinese customs data released Monday showed March crude imports surged nearly 5% year-on-year, with a notable increase in Iranian shipments as Tehran prepares for stricter U.S. sanctions.
Despite the short-term optimism, upside potential may be limited after OPEC+ revised down its global oil demand growth forecasts for 2025 and 2026. The group now projects demand to rise by 1.3 million bpd in 2025 and 1.28 million bpd in 2026, down from earlier estimates of 1.45 million and 1.43 million, respectively.
Technically, WTI remains below the 9-day EMA on the daily chart, trading 0.56% higher, with support at $60.65 and resistance at $63.42. Brent also trades below its 9-EMA, up 0.73%, with support around $63.63 and resistance near $65.75.
Meanwhile, U.S.-Iran nuclear talks held over the weekend were described as “constructive,” sparking speculation about potential increases in Iranian oil exports.
Gold
Gold continues its upward trajectory amid geopolitical and economic uncertainty, gaining 0.46% to $3,226.13, within reach of its all-time high of over $3,245.
Despite a 90-day tariff pause and exemptions on some electronics, the threat of renewed trade tensions—especially with China—has rattled markets, leading investors to flock to traditional safe havens.
Fed Governor Christopher Waller downplayed the inflationary impact of tariffs, suggesting it could be transitory—leaving the door open for potential interest rate cuts.
Analysts now forecast gold to reach $3,700 by year-end and $4,000 by mid-2026, supported by strong ETF inflows and central bank purchases. Technically, gold has immediate support at $3,160, with the next 9-SMA support at $3,116 on the daily chart.
Gold prices in the UAE as of today
24 Carat: AED389.50
22 Carat: AED360.50
21 Carat: AED345.75
18 Carat: AED296.25
U.S. Markets
The S&P 500 closed in positive territory Monday, led by gains in tech stocks and a strong rally in automakers, following President Trump’s comments on potential tariff leniency.
However, trade uncertainty persists, as the U.S. moved forward with plans to impose new tariffs on semiconductor and pharmaceutical imports, with probes initiated by the Commerce Department.
Investors are now focused on a slate of major earnings due today from Bank of America, Citigroup, Johnson & Johnson, and PNC Financial.
Technically, the S&P 500 is trading above the 9-SMA, though the formation of a death cross—where the 50-DMA crosses below the 200-DMA—signals potential downside risk. Key support is at $5,376, with resistance at $5,459, aligning with the 70.8% Fibonacci retracement on the 1-hour chart.
U.S. Dollar Index (DXY)
The U.S. Dollar Index rebounded by 0.18%, reacting to Trump’s latest tariff relief comments. Despite the bounce, the greenback remains under pressure due to erratic trade policies and ongoing uncertainty.
On the charts, DXY is trading below the 9-day SMA at 99.794, with resistance expected at 100.734 and support at 98.922.
