Key Drivers: Trade Talks, Interest Rates, and OPEC Decisions
Gold and Safe-Haven Assets Decline
- Global gold prices fell on Monday as U.S. President Donald Trump signaled progress on several trade agreements.
- Trump extended tariff exemptions for multiple countries, reducing gold’s appeal as a safe haven.
- Trump confirmed on Sunday that higher tariffs may be imposed starting August 1, after previously delaying their implementation.
Currency Market Reactions and Interest Rate Outlook
- European stocks showed mixed performance amid uncertainty around the trade deadlines.
- Fears of inflation from tariffs lowered expectations for aggressive U.S. Federal Reserve rate cuts.
- The U.S. dollar index declined by 0.2% in Asian trading, with futures down 0.1%.
- The Australian dollar fell for the third consecutive session, with markets widely expecting a rate cut by the Reserve Bank of Australia on Tuesday.
Oil Market Developments and OPEC+ Decisions
- Oil prices dropped sharply on Monday after OPEC+ announced a larger-than-expected production increase of 548,000 barrels per day for August.
- This increase surpasses the May-July monthly additions of 411,000 barrels per day.
- OPEC+ warned of a potential further increase in September, signaling a continued easing of the voluntary production cuts.
- The decision pressures oil prices amid growing supply concerns.
Conclusion:
Global markets are currently driven by shifting trade policies, uncertain monetary strategies, and aggressive oil production increases. Investors are advised to stay alert to upcoming key dates and policy changes that could reshape market trends in the coming weeks.
