In early Asian trading on Wednesday, spot gold was hovering near $4,595 per ounce after both gold and silver surged to fresh all-time highs on Tuesday. Softer US inflation data reinforced expectations that the Federal Reserve will cut interest rates later this year, while ongoing geopolitical and economic uncertainty continued to drive safe-haven demand.
Crude oil was also strong, with WTI trading near $60.87 per barrel, after prices jumped more than 2 percent on Tuesday as geopolitical risks tightened supply expectations.
Gold
Gold and silver surged to record levels on Tuesday after US inflation data strengthened market confidence that the Federal Reserve will begin easing policy later this year.
The US core CPI for December rose 0.2 percent month on month and 2.6 percent year on year, both slightly below market expectations. This reinforced expectations for lower interest rates, weakening the dollar and boosting demand for precious metals.
Spot gold touched an intraday record high of $4,634.25 per ounce, before stabilizing around $4,591.49. US President Donald Trump welcomed the inflation report, saying it supported his push for the Fed to lower interest rates. Analysts noted that ongoing geopolitical tensions and growing doubts over Fed independence continue to provide fundamental support for gold.
Silver also surged alongside gold, breaking to new all-time highs as investors sought protection from currency depreciation, political instability, and easing monetary policy.
Technical Outlook
From a technical perspective, the market remains in a powerful bullish structure. On the four-hour chart, price action continues to climb in a tight, upward-moving consolidation, reinforcing the strength of the uptrend.
Key dynamic support now sits near $4,575, followed by $4,456. After Tuesday’s CPI-driven rally, the first short-term support zone is located at $4,534.94, with secondary support at $4,468.91. Holding above these levels keeps the bullish structure intact.
A sustained break above $4,600 would open the door for a test of $4,630, followed by the next major resistance near $4,665. The prolonged sideways consolidation is also helping MACD momentum reset near the zero line, which often precedes another strong upside breakout.
For today’s session, long positions can be considered near $4,575 and $4,556, as long as price holds above these key support zones.
Today’s Focus
Trading bias: Buy on pullbacks, sell into rallies
Resistance levels: 4,630 to 4,650
Support levels: 4,570 to 4,550
Oil
Oil prices climbed more than 2 percent on Tuesday as geopolitical tensions became the dominant market driver. Investors are increasingly concerned that Iranian oil supplies could be disrupted amid widespread anti-government protests and the possibility of tougher US action, a risk that is now outweighing the potential for increased supply from Venezuela.
Brent crude settled 2.5 percent higher at $65.47 per barrel, while WTI crude rose about 2.8 percent to $61.15 per barrel. Prices briefly gained more than 3 percent during the session, reaching their highest level in nearly three months.
US President Donald Trump further fueled market anxiety by threatening to impose 25 percent tariffs on any country trading with Iran. He also publicly backed Iranian protesters and cancelled a planned meeting with Iranian officials. Analysts estimate that a full removal of Iranian oil from global markets could reduce supply by around 3.3 million barrels per day.
Barclays noted that political instability in Iran has already added $3 to $4 per barrel in geopolitical risk premium, while uncertainty surrounding Venezuela and the Russia–Ukraine conflict continues to support oil prices.
Technical Outlook
On the daily chart, crude has broken above key moving averages after three consecutive bullish candles, shifting the medium-term trend into a range-bound recovery. The $60.50 area now acts as the first major resistance. Failure to clear this level could lead to a return to sideways and weaker price action.
On the one-hour chart, the uptrend remains intact as prices approach the $60 level. Moving averages continue to support price, and MACD has crossed above the zero line with a bullish expansion, indicating strong upside momentum.
As long as price holds above $59 to $60, the path of least resistance remains to the upside.
Today’s Focus
Trading bias: Buy on dips, sell on rallies
Resistance levels: 62.5 to 63.5
Support levels: 60.0 to 59.0
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