International Oil and Gold Prices Plunge

On June 9, 2026, international oil and gold prices experienced a synchronized plunge, primarily influenced by changes in geopolitical tensions and expectations surrounding the Federal Reserve’s monetary policy. Domestic oil prices in China are also currently facing a period of continuous reductions.

Closing Data: As of the close of trading on June 9, the price of light sweet crude oil futures for July delivery on the New York Mercantile Exchange fell by $3.10 to settle at $88.20 per barrel, a decrease of 3.4%; the price of Brent crude oil futures for August delivery on the London ICE Futures Exchange fell by $2.80 to settle at $91.45 per barrel, a decrease of 2.97%. During the trading session, the two crude oil futures contracts fell by as much as 5.86% and 4.97% respectively.

The temporary easing of tensions in the Middle East has rekindled hopes for an end to the US-Iran conflict. The risk premium accumulated due to previous geopolitical tensions has been digested, pushing oil prices down.

Global supply is generally ample: US shale oil production has reached a record high, emerging oil-producing countries such as Brazil and Guyana are accelerating capacity release, and OPEC+ is gradually withdrawing from its voluntary production cut agreement, resulting in a significant increase in global crude oil supply since the beginning of the year.

Demand growth momentum is weakening: Increased penetration of new energy vehicles has suppressed the growth in fuel demand, and weak manufacturing in Europe and the US has further depressed global crude oil consumption expectations, resulting in a supply-demand imbalance.

Closing data: On June 9, August gold futures on the New York Mercantile Exchange fell to around $4,230 per ounce, a drop of about 2%; on the morning of June 10, spot gold fell below $4,200 per ounce, down more than 1.4%, hitting a nearly three-month low since March 23.

Easing tensions in the Middle East have reduced the safe-haven demand for gold, while falling oil prices have also eased upward inflationary pressures, weakening gold’s value as an inflation hedge.

Stronger-than-expected US non-farm payroll data for May reinforced market expectations of a Federal Reserve rate hike this year, pushing the dollar higher and US Treasury yields up. Since gold typically has a negative correlation with the dollar and US Treasury yields, its price came under downward pressure.

The market anticipates that the Fed’s tightening monetary policy will continue to suppress gold prices, and the short-term decline is likely to continue.