Gold prices started on Wednesday on the back foot as the traders resorted to booking profits after the metal had hit $4,500 an ounce.
Silver also fell sharply, tracking losses in gold. The white metal had gained 8% on Tuesday and gave up most of those gains on Wednesday.
Meanwhile, oil prices were largely steady as US President Donald Trump announced that the US has reached a deal to import a hefty amount of Venezuelan crude oil.
Additionally, base metal prices were in the red as well as the positive momentum took a breather, with copper easing from its record highs.
Gold, silver fall on profit booking
Sharp gains in gold prices were partially reversed in European trading on Wednesday as investors engaged in profit-taking.
This decline occurred while markets were evaluating increased geopolitical risks and anticipating key US economic data.
At the time of writing, the COMEX gold contract was at $4,461.89 per ounce, down 0.8%, while silver was at $77.030 per ounce, down 4.9% from the previous close.
Gold reached $4,500 during late trading on Tuesday, marking its highest closing price since hitting an all-time peak of $4,550 in late December.
However, a wave of profit-taking led to a sell-off in the Asian Pacific trade.
Despite this decline, the losses were limited, with gold remaining above Tuesday’s opening price by mid-morning.
“Technically, gold’s bull market looks as if it remains intact. Although traders should expect continued volatility,” said David Morrison, senior market analyst at Trade Nation.
Gold looks tantalisingly close to taking out its all-time high, and the daily MACD is no longer as overbought as it was ten days ago.
The non-yielding metal continues to be supported by ongoing geopolitical uncertainty and anticipation of additional Federal Reserve rate cuts. Furthermore, the dollar’s struggle to achieve further gains has helped mitigate selling pressure.
Meanwhile, following a 16% decline from its previous record high at the end of December, silver has enjoyed a spectacular recovery so far this year.
“Can it continue its bull run from here? Well, anything is possible, and there are plenty of analysts predicting that silver hits $100 or more,” Morrison said.
But it is notoriously volatile, and there can’t be too many traders who would enjoy the ride, particularly when using leverage.
Oil steady
Oil prices stabilised on Wednesday after US President Donald Trump’s statements confirmed a deal for the United States to import as much as $2 billion worth of Venezuelan crude.
This agreement, which would boost supplies for the world’s largest oil consumer, was absorbed by investors.
Sources informed Reuters that an agreement between Washington and Caracas would initially necessitate rerouting oil shipments originally destined for China.
Due to an export blockade imposed by Trump in mid-December, Venezuela has been unable to ship millions of barrels of oil currently loaded on tankers or held in storage tanks.
A US pressure campaign targeting Venezuelan President Nicolas Maduro’s government, which included a blockade, ended with American forces capturing him over the weekend.
This action has been denounced by top Venezuelan officials as a kidnapping, with accusations that the US is attempting to seize the country’s extensive oil reserves.
Following the peak reached last summer, crude oil has now fallen back beneath the upper resistance line of the established downtrend.
Expectations for increased oil output in Venezuela have been boosted by Trump’s commitment to overhaul the country’s oil sector and promote the involvement of US companies in infrastructure reconstruction.
“As global demand growth continues to slow, the prospect of increased supply acts as a headwind for prices, regardless of geopolitical headlines,” Trade Nation’s Morrison said.
Until that balance shifts, oil is likely to remain under pressure.
At the time of writing, the price of West Texas Intermediate crude was at $57.04 per barrel, down 0.2%, while Brent was at $60.79 a barrel, up 0.1%.
Base metals
The recent bullish momentum in the base metals sector, which began in late December, is taking a pause this morning, resulting in softer prices.
Copper, in particular, has seen its price drop by approximately $70 amidst heavy trading volumes.
The high level of activity that has characterised the start of 2026 is further amplified on Wednesday by the year’s first option expiry, according to Neil Welsh, head of metals at FCA-regulated multi-asset brokerage Britannia Global Markets.
The copper market’s sustained rally is being closely scrutinised by traders, especially after Citigroup’s reiteration of a significant forecast: a potential peak of $14,000 per ton this month, before settling to a yearly average of $13,000, Welsh said.
Despite this bold call, the market’s dynamics are still heavily influenced by positioning and momentum, with persistent supply-chain risks and macro policy uncertainty in the United States serving as key underlying drivers.
Nickel saw a significant climb yesterday, gaining approximately 10% in its largest single-day rise in over three years. This morning, however, the metal is stable after reaching a 19-month peak close to $18,785.
The price surge appears to be fueled by substantial financial inflows and vigorous Chinese demand for nickel pig iron in anticipation of Lunar New Year inventory building.
Furthermore, Indonesia’s decision to restrict production and fine miners who violate permit regulations has introduced a significant supply-risk premium.
Despite these factors, underlying fundamentals still suggest that the market remains in surplus.
Meanwhile, Capstone Copper is currently engaged in government-mediated discussions with striking workers at its Mantoverde mine in Chile.
This marks the first formal negotiation since the stoppage began five days ago. The market is closely monitoring these talks for any signs of resolution, particularly due to the existing tightness in the copper supply narrative.
Welsh added:
Overall, the tone is calmer but far from quiet as traders reassess positioning after a blistering start to the year.
The post Commodity wrap: gold, silver fall; oil steady as US strikes Venezuelan oil deal appeared first on Invezz
