Oil Range-Bound as Gold Surges on Rate Cut Expectations

Oil and gold prices are currently experiencing distinct momentum as crude benchmarks hover near recent ranges while bullion continues to attract safe-haven demand amid global economic uncertainty.

The Brent crude price is trading around $82 per barrel, with WTI near $78. Ongoing OPEC+ production cuts and geopolitical tensions in key producing regions are supporting oil prices, but capped by concerns over global demand growth and rising non-OPEC supply.

Gold prices have remained resilient, supported by persistent central bank buying and expectations that major central banks will begin cutting interest rates later this year. The market is pricing in a 65% probability of a Fed rate cut in September, according to CME FedWatch, which bolsters gold's appeal as a non-yielding asset.

Traders should watch the upcoming U.S. CPI report and the Fed's minutes from the last FOMC meeting, as these will significantly influence both markets.