Oil prices on course for biggest monthly fall since 2021
Sterling slipped 0.2% lower, to trade below the $1.34 mark. The dollar strengthened even as fears of a recession in the US begin to solidify.
Wall Street firms have raised their odds of a year-end recession, citing growing risks from president Trump's aggressive trade policies. But with tariffs creating whiplash for businesses and consumers alike, economists caution that the impact could arrive sooner than anticipated, casting uncertainty over the broader outlook.
The dollar index (DX-Y.NYB), which measures the greenback against a basket of currencies, rose 0.2%.
Sterling also fell against the euro, heading 0.2% lower to trade below the 1.18 mark.
Gold prices pulled back further from all-time highs of $3,500 on Wednesday dropping around 1.2% by late-morning as geopolitical tensions eased slightly.
Spot gold dipped 0.2%, while US futures slid 0.5%, pressured by a modest rebound in the dollar index.
"The recent de-escalation in US trade friction — highlighted by Trump's tariff relief orders and China's rollback of its 125% ethane duty — has dialled down the geopolitical risk premium that had been fuelling bullion's historic rally," said Mohamed Radwan, lead analyst at XMarabia.
The dip represents short-term profit taking by investors, as opposed to a longer-term shift, Radwan added.
He said: "The metal's role as a hedge against policy uncertainty, currency debasement, and financial stress remains intact — especially with global central banks still cautious and rate paths unclear. Until the Fed firmly signals a pivot or economic momentum reaccelerates, gold retains its strategic appeal."
A firm dollar also contributed to the dip. A strong dollar makes gold more expensive for buyers outside the US.
Oil prices fell further on Wednesday, putting them on course for their biggest monthly fall since 2021.
Brent crude futures were down 0.8%, to trade around $62.75 a barrel by late-morning, while West Texas Intermediate dipped 0.9%, hitting the $59.87 a barrel mark.
The drop comes as concerns about supply are mounting and the ongoing global trade war has put doubt in the minds of traders about demand.
According to Reuters, Brent and WTI have lost 15.4% and 17% respectively, in April, the biggest percentage drops since November 2021.
Bets are mounting of a global recession this year, with restrictive tariff policies from the Trump administration being a sticking point for growth.
OPEC+ members ramping up supply output is also a concern heading into the summer.
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