Gold Tops $3,400 on Worries Over FedMarket Talk

Gold jumped over 2.5% to a record high above $3,410 per ounce as investors sought safety amid rising uncertainty.

The U.S. dollar dropped to a three-year low after President Trump ramped up pressure on the Federal Reserve, calling for aggressive rate cuts and reportedly considering removing Fed Chair Powell.

Fears of political interference in monetary policy have shaken confidence in the dollar.

At the same time, Trump’s tariff threats — including a new probe into critical mineral imports — have added to worries about slower growth and rising inflation.

Together, these factors have driven strong safe-haven demand for gold, which is now up 30% this year.

WINNIPEG, Manitoba--The ICE canola futures market showed some independent strength coming out of the Easter weekend.

Chicago soyoil, European rapeseed and Malaysian palm oil declined to start the week. Crude oil dropped by more than US$1 per barrel on reported progress toward a deal between the U.S. and Iran over the latter's nuclear program.

The Canadian dollar was up more than one-quarter of a U.S. cent compared with Thursday's close. The Bank of Canada did not release a closing exchange rate Friday due to Good Friday.

Nearly 10,900 contracts were traded. Prices in Canadian dollars per metric ton as of 9:36 a.m. ET:

 
           Price      Change 
May       671.40     up 3.50 
Jul.      679.80     up 4.10 
Nov.      651.80     up 1.30 
Jan.      659.00     up 1.20 
 

Source: Commodity News Service Canada, news@marketsfarm.com

Brent crude oil futures dropped over 3% to below $66 a barrel on Monday, as easing tensions between the US and Iran raised the possibility of more Iranian crude returning to the market.

Talks between the two sides made “very good progress,” with plans to draft a framework for a potential nuclear deal.

This followed new US sanctions on a Chinese refinery accused of processing Iranian oil.

At the same time, demand concerns persist amid fears that US tariffs could weaken global growth.

A recent poll showed a near 50% chance of a U.S. recession within a year.

On top of that, OPEC+ is still expected to raise output by 411,000 barrels per day in May, though some of that increase could be offset by cuts from countries that have been exceeding their quotas.

WTI crude oil futures dropped over 3% to $62.5 a barrel on Monday, as easing tensions between the US and Iran raised the possibility of more Iranian crude returning to the market.

Talks between the two sides made “very good progress,” with plans to draft a framework for a potential nuclear deal.

This followed new US sanctions on a Chinese refinery accused of processing Iranian oil.

At the same time, demand concerns persist amid fears that US tariffs could weaken global growth.

A recent poll showed a near 50% chance of a U.S. recession within a year.

On top of that, OPEC+ is still set to boost output in May, though cuts from some overproducing members may offset the increase.

Lumber decreased to a 10-week low of 568.00 USD/1000 board feet.

Over the past 4 weeks, Lumber lost 12.33%, and in the last 12 months, it increased 9.56%.

CBOT grain futures are mixed to start the week, with most-active corn up 0.7%, soybeans down 0.1%, and wheat flat. The moves come after a long holiday weekend for grains trading, and is a reaction to indications that Japan would "consider" increasing how much in soybeans and rice it imported from the U.S. — which traders are taking as a sign that President Trump's wave of tariff actions could be tailored to avoid impacting markets that the U.S. relies on, including Japanese purchasing of U.S. soybean imports. It also comes as a weaker U.S. dollar is making exports more competitive for buyers overseas, says Matt Zeller of StoneX in a note. (kirk.maltais@wsj.com)