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Defensive Demand Lifts Metals as Oil Surges on US Sanctions | 23rd October 2025

Metals Steady, Oil Soars Global markets traded cautiously on Thursday as investors shifted toward defensive assets amid renewed geopolitical tensions. Gold softened slightly but stayed supported by risk-off flows, while silver advanced above $48.50 as investors sought portfolio protection. Oil prices jumped beyond $60.00 after the US imposed sanctions on Russian energy companies, raising concerns over potential supply disruptions. Meanwhile, the US Dollar Index hovered near 99.00 as optimism surrounding a possible US–China trade deal underpinned broader market sentiment. Gold Price Forecast (XAU/USD) Current Price and Context Gold prices slipped modestly below $4,250 as traders booked profits following recent gains. However, the downside remains limited as investors maintain defensive positions amid global uncertainty and shifting inflation expectations. Key Drivers Geopolitical Risks: Continued concerns over sanctions and supply disruptions keep investors cautious, indirectly supporting gold demand. US Economic Data: Traders await key inflation data that could determine the near-term direction for the USD and Treasury yields. FOMC Outcome: The Fed’s dovish tone keeps real yields contained, maintaining some support for the yellow metal. Trade Policy: Tentative progress in US–China trade talks slightly dampens safe-asset appeal. Monetary Policy: Expectations for gradual easing by major central banks provide a buffer for gold prices. Technical Outlook Trend: Slightly bearish in the short term after strong recent rallies. Resistance: $4,280 Support: $4,210 Forecast: Gold may trade sideways with limited downside unless US data surprises to the upside. Sentiment and Catalysts Market Sentiment: Neutral-to-cautious as investors await inflation cues. Catalysts: Upcoming US PCE inflation and geopolitical headlines could define near-term moves. Silver Price Forecast (XAG/USD) Current Price and Context Silver advanced above $48.50, outperforming gold as industrial and defensive demand combined to lift the metal. Renewed buying interest came amid moderate USD weakness and improved risk sentiment. Key Drivers Geopolitical Risks: Persistent global tensions keep silver supported as both an industrial and defensive asset. US Economic Data: Stronger-than-expected data could limit upside if the dollar rebounds. FOMC Outcome: Continued dovish Fed stance aids non-yielding metals. Trade Policy: Hopes of smoother global trade relations buoy industrial metals like silver. Monetary Policy: Low global rates underpin long-term demand for metals. Technical Outlook Trend: Bullish momentum persists above $48.00. Resistance: $49.20 Support: $48.00 Forecast: Silver could test $49.00 if market sentiment stays upbeat. Sentiment and Catalysts Market Sentiment: Optimistic amid broad-based metal strength. Catalysts: US inflation data and USD performance will guide direction. WTI Crude Oil Forecast Current Price and Context WTI surged to a two-week high above $60.00 after the US imposed new sanctions on Russian oil firms. The move reignited supply concerns and shifted sentiment back toward tighter market expectations. Key Drivers Geopolitical Risks: Heightened tensions following US sanctions on Russia elevate supply fears. US Economic Data: Stable demand projections from recent reports lend modest support. FOMC Outcome: Dovish Fed policy supports global demand outlook. Trade Policy: Easing US–China tensions provide further tailwinds for energy demand. Monetary Policy: Looser global conditions enhance growth-sensitive assets like oil. Technical Outlook Trend: Strong bullish breakout above $59.00. Resistance: $60.80 Support: $59.20 Forecast: Oil likely to stay firm if supply disruptions persist. Sentiment and Catalysts Market Sentiment: Bullish amid tightening supply outlook. Catalysts: Further sanctions or OPEC+ comments could add to volatility. US Dollar Index Forecast (DXY) Current Price and Context The US Dollar Index steadied around 99.00 as optimism over a potential US–China trade deal balanced dovish Fed expectations. Traders remain cautious ahead of key US economic data later this week. Key Drivers Geopolitical Risks: Reduced tensions with China limit demand for defensive USD flows. US Economic Data: Market focus remains on upcoming GDP and inflation data for policy clues. FOMC Outcome: Fed officials’ dovish tone weighs on the dollar’s momentum. Trade Policy: Prospects of a trade breakthrough improve global sentiment, curbing dollar demand. Monetary Policy: Easing bias from the Fed continues to restrain the greenback’s upside. Technical Outlook Trend: Consolidation phase around 99.00. Resistance: 99.40 Support: 98.80 Forecast: DXY may remain range-bound as traders await new catalysts. Sentiment and Catalysts Market Sentiment: Neutral with mild downside bias. Catalysts: US data surprises or trade headlines could shift direction quickly. Canadian Dollar Forecast (USD/CAD) Current Price and Context USD/CAD slipped toward 1.4000 as higher oil prices strengthened the loonie. Meanwhile, comments from Canadian PM Carney hinting at reduced North American integration added volatility to sentiment. Key Drivers Geopolitical Risks: Canada’s trade and energy links face uncertainty amid new policy direction. US Economic Data: Stronger US figures could help USD recover if rate-cut expectations fade. FOMC Outcome: A dovish Fed limits USD strength, favoring CAD. Trade Policy: Shifts in Canada–US trade relations influence long-term sentiment. Monetary Policy: BoC expected to stay data-dependent amid moderate inflation trends. Technical Outlook Trend: Mildly bearish below 1.4050. Resistance: 1.4050 Support: 1.3980 Forecast: Pair may consolidate with bias toward further downside if oil strength persists. Sentiment and Catalysts Market Sentiment: Bearish as energy-linked currencies outperform. Catalysts: Oil price trends and BoC commentary remain key drivers. Wrap-up Market sentiment remained mixed as traders balanced optimism over US–China trade progress against renewed geopolitical frictions. Defensive demand continued to support metals, while the sharp rally in oil highlighted the market’s sensitivity to supply disruptions. Looking ahead, investors will monitor US economic data and upcoming corporate earnings for clues on global growth momentum and policy direction. Ready to trade global markets with confidence? Join Moneta Markets today and unlock 1000+ instruments, ultra-fast execution, ECN spreads from 0.0 pips, and more! Start now with Moneta Markets!

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Publication date:

2025-10-23 09:55:05 (GMT)

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