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Gold prices stabilized near $2750/oz on Tuesday after a sharp 1.1% decline the previous day. Monday’s sell-off was driven by investors liquidating bullion to cover losses from a technology stock rout, triggered by Chinese startup DeepSeek’s disruptive low-cost AI model, which cast doubt on the valuations of traditional tech giants. Market sentiment remains cautious as traders weigh President Donald Trump’s tariff proposals and the fallout from nearly $1 trillion wiped from the NASDAQ. Attention now shifts to the Federal Reserve’s first meeting of the year, where interest rates are expected to remain unchanged, with potential for further rate cuts or haven demand supporting gold in the longer term.

WTI crude edged closer to $74/bbl on Tuesday, rebounding after a nearly 2% drop on Monday as traders assessed supply risks from Libya and escalating trade tensions. Protests at Libya’s Ras Lanuf and Es Sider ports, which account for about a third of the country’s crude exports, have halted oil loadings, highlighting ongoing geopolitical risks. Meanwhile, US President Donald Trump’s aggressive tariff threats, including proposed charges on steel, aluminum, and copper, weighed on market sentiment. Monday’s decline was amplified by a tariff spat with Colombia and broader market selloffs. Looking ahead, traders anticipate OPEC and its allies will maintain their current supply strategy, resisting Trump’s calls for increased production, with output hikes scheduled to resume incrementally in April.

European natural gas prices rose slightly on Tuesday, gaining up to 1.2%, as reduced flows from Norway and forecasts for colder weather next week tightened the market. Outages at several Norwegian fields lowered gas supplies, increasing reliance on storage withdrawals, which are already under strain. Weather models predict a return to seasonal norms after unseasonably warm temperatures, while low wind conditions in Germany are expected to boost fossil fuel demand for power generation, adding further pressure to the market.

LME base metals traded lower, with copper hitting a two-week low as a stronger dollar and weaker-than-expected Chinese factory activity data weighed on sentiment. Concerns over a slowdown in China, compounded by uncertainties surrounding U.S. President Donald Trump’s fresh tariff threats on metals like copper and aluminum, further pressured the market. Trump’s proposed tariffs on imported goods, aimed at boosting domestic production, heightened fears of a trade disruption, especially with the February 1 tariff deadline looming for China, Mexico, and Canada. Trading activity was subdued as Chinese markets remained closed for the Lunar New Year holiday, while investors awaited the Federal Reserve’s policy decision, expected to hold interest rates steady. Geopolitical tensions and subdued Chinese demand contributed to bearish market sentiment.

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