Oil and Gold Prices at a Crossroads Amid Geopolitical Tensions

Oil and gold prices are facing distinct drivers as they enter the new trading week. Crude oil is being supported by OPEC+ production cuts and geopolitical tensions, but demand concerns from major economies continue to cap gains.

The International Energy Agency (IEA) recently revised its 2025 demand growth forecast downward by 100,000 barrels per day, citing weaker-than-expected consumption in China and Europe. Technical levels suggest immediate resistance for Brent at $87, with support at $82. A breakout above $87 could trigger momentum buying, while a drop below $82 may signal further downside.

Gold prices, on the other hand, have remained resilient near record highs due to central bank buying and persistent geopolitical uncertainty. The Federal Reserve's stance on interest rates is a key driver; recent comments from Fed officials suggest a cautious approach to rate cuts, which could limit gold's upside. However, real yields remain negative, making bullion attractive.