Oil and Gold Surge in Sync as Markets Juggle Trade Optimism and Weak U.S. Data

Updated on 6 June 2025

Oil and gold markets both rallied this week, driven by a rare combination of renewed U.S.–China trade optimism and disappointing economic signals from the United States. While risk appetite returned on signs of geopolitical thaw, investors also sought safety amid evidence of a cooling labor market. The result: a parallel rise in energy and safe-haven assets.

U.S.–China Phone Call Fuels Oil Momentum

Brent and WTI crude prices posted strong weekly gains after a call between President Trump and President Xi revived trade communication. The leaders agreed to resume tariff talks, lifting investor sentiment and reigniting demand expectations. Brent closed near $65.34, with WTI at $63.37.

The oil rally came despite Saudi Arabia’s decision to lower July crude prices for Asian buyers to near two-month lows — a reminder of the competitive pressures within OPEC+ even as global trade sentiment improves.

Gold Climbs as Weak Labor Data Casts Shadow

Meanwhile, gold prices also moved higher, with spot gold nearing $3,363 and U.S. gold futures touching $3,387 per ounce. The safe-haven metal gained 2.3% for the week as U.S. jobless claims hit a seven-month high and consumer sentiment slumped, signaling softness beneath the surface of the U.S. economy.

Despite a risk-on mood in equities, investors are clearly hedging — balancing hopes for global cooperation with concerns over domestic resilience.

Investor Takeaway: One Eye on the Charts, One on the Headlines

The dual rally in oil and gold underscores the market’s split mindset. Optimism over trade is real, but so are the macro headwinds. With CPI data, FOMC minutes, and more labor numbers due next week, traders are staying agile — rotating between risk and refuge depending on the headline of the hour.