Increased supply limits oil price increases, Trump imposes movie tariffs, risk aversion pushes gold prices back to around 3330

Basic news

On Tuesday (May 6, Beijing time), spot gold trading was around 3332.10, gold prices rose more than 2% on Monday. Driven by weakening the US dollar and safe-haven demand, the market is waiting for the Federal Reserve's policy decision later this week; U.S. crude oil trading was around 57.10 US dollars per barrel, and oil prices closed at a multi-year low on Monday, as OPEC+ decided to accelerate production growth, which aroused concerns about increased global supply amid uncertain demand outlook.

Stock and PK 500 closed lower on Monday, with the longest rally in 20 years xmmarkets.cning to an abrupt end, with investors evaluating the latest tariff news from U.S. President Donald Trump and waiting for the Federal Reserve to make a monetary policy decision later this week.

Trump announced on Sunday that he imposed 100% tariffs on films made outside the United States, but did not give details on how to implement them. Stocks have been volatile since Trump announced the first round of tariffs on April 2, with the S&P 500 falling nearly 15% at one point, but then stabilizing, closing higher in the past nine trading days ending last Friday, marking the longest round of gains since 2004.

U.S. Treasury Secretary Bescent said on Monday that President Trump's tariffs, tax cuts and regulatory agenda will jointly promote long-term investment in the U.S. economy, saying that the U.S. financial markets are "anti-vulnerable" and will withstand the test of any short-term turmoil.

Art Hogan, chief market strategist at BRileyWealth, said: "The S&P 500 has been going on for nine days and it is difficult to maintain the rise, and we will begin to announce the final announcement.The possibility of an agreement is taken into consideration, but there is not much time left because every past week and we have not started finalizing the agreement, there will be economic losses. ”

The Dow Jones Industrial Average fell 0.24% to 41,218.83 points, the S&P 500 fell 0.64% to 5,650.38 points, and the Nasdaq fell 0.74% to 17,844.24 points. The Dow also ended its nine consecutive trading days of gains, the longest gain since December 2023. After Trump announced the news of film tariffs, several major film and television production xmmarkets.cnpanies plummeted, but the decline then narrowed.

Netflix fell 1.9%, ending a row of 1 In one trading day, Amazon fell 1.9% and Paramount globally fell 1.6%. The energy sector fell 2%, the worst performance among S&P's 11 major sectors, after OPEC+ decided to speed up production and demand remained uncertain, which raised concerns about increased supply. Berkshire Hathaway's Class B shares fell 5.1% after Buffett said it would resign as CEO.

Economic, the Institute for Supply Management (ISM) data showed that U.S. service industry growth rebounded in April, while measuring corporate payments Indicators for materials and services prices soared to their highest levels in more than two years, indicating that inflationary pressures caused by tariffs are increasing.

Investors will closely monitor the Fed’s policy statement on Wednesday, with markets generally expected to keep interest rates unchanged. Chairman Powell’s speech will be closely watched and investors will look for signs of when to adjust monetary policy.

Gold market

Gold prices rose more than 2% on Monday, driven by weaker dollar and safe-haven demand, and the market is awaiting the Fed’s policy decision later this week . Spot gold rose 2.3% to $3315.09 per ounce. U.S. gold futures closed up 2.4% to $3322.3.

U.S. President Trump announced a 100% tariff on films produced overseas, raising concerns about the potential consequences of the global trade war.

Jim Wyckoff, senior analyst at KitcoMetals, said: "We are seeing a continuous inflow of safe-haven demand, keeping gold prices firms, and at least in the short term, gold prices will trade above $3,000. I don't think there will be any change in interest rates at this meeting, but we'll look at it and see if the Fed has any particular tendencies. "

Traders are waiting for xmmarkets.cnments from Fed Chairman Powell to make Wednesday to get clues about the interest rate path. The Fed has kept its policy interest rate in the range of 4.25%-4.50% since December.

The Fed is expected to keep interest rates unchanged at this meeting, but this may be the last time the result is so clear, as Trump's tariff policy casts a shadow of uncertainty on the economic outlook.

Gold is considered a tool to hedge uncertainty and tends to shine in a low-interest rate environment.So far this year has set record highs, with an increase of more than 26%.

Goldman Sachs expects gold's performance to continue to outperform silver, but also points out that given the strong correlation of capital flows, the recovery of gold demand in 2025 may also boost silver prices. Spot silver rose 1% to $32.31 an ounce.

At the same time, platinum fell 0.4% to $956.05; palladium fell 1.5% to $939.55. Oil market

Oil prices fell more than $1 on Monday, closing at multi-year lows as OPEC+ decided to accelerate production growth, raising concerns about increased global supply amid uncertain demand outlook.

Brent crude oil futures closed at $60.23 per barrel, down 1.7%. U.S. crude oil futures closed at $57.13 a barrel, down 2%. Oil prices in both indicators hit new lows since 2021.

Last week, Brent crude fell 8.3% and U.S. crude fell 7.5%, after Saudi Arabia said it could cope with a long-term low oil price environment. Saxo Bank analyst Ole Hansen said this offsets the demand side's optimistic expectations for possible tariff negotiations between China and the United States.

Last Saturday, OPEC+ agreed to further accelerate oil production for the second consecutive month, with production increasing by 411,000 barrels per day in June.

The increase in production in June by OPEC+ of eight member states will bring the total increase in production in April, May and June to 960,000 barrels per day. According to Reuters' calculations, this means that a total of 2.2 million bpd of production cuts reached by multiple agreements since 2022 have been lifted by 44%.

ThirdBridge analyst Peter McNally said: For non-OPEC+ oil producers, which currently account for nearly 60% of the global oil supply, if these new output flows into the market, causing oil prices to fall, their market share growth may end.

OpEC+ sources told Reuters that if member states cannot better xmmarkets.cnply with their production quotas, the organization may xmmarkets.cnpletely lift voluntary production cuts by the end of October.

OPEC+ sources said Saudi Arabia is pushing OPEC+ to speed up the lifting of previous production cuts to punish Iraq and Kazakhstan, who are also members of OPEC+, to xmmarkets.cnply with their poor production quotas.

Hansen of Saxo Bank said: "Under Saudi instigation, increasing production is to challenge the U.S. shale oil supply, and to punish member states that benefit from rising prices but ignore production restrictions."

Dutch International Group (ING) and Barclays Bank also lowered their forecasts for Brent crude after OPEC+ made the above decision.

Barclays cuts its average Brent crude oil price forecast for 2025 to $66 per barrel and lowers its 2026 forecast for $2 to $60 per barrel, while Dutch International expects Brent crude oil this yearThe average price is $65, and the previous forecast was $70.

Foreign market

The dollar weakened against major currencies such as the yen and the euro on Monday, with the market weighing the ongoing uncertainty of President Trump's tariff policy and its impact on the economy.

Other Asia-Pacific currencies, including the Australian dollar, rose against the US dollar. The Australian dollar hit a high of $0.64,935, the highest since December.

BannockburnGlobalForex chief market strategist Marc Chandler said the dollar weakened against Asian currencies in part because some investors cleared a large number of unheld positions after news that the U.S. would impose more tariffs.

Trump doubled down on tariff-driven policies in an interview Sunday, reiterating that imposing tariffs on imported goods will ultimately make Americans rich. He announced on Sunday that he imposed 100% tariffs on films made outside the United States.

Treasury Secretary Becent defended Trump's tariff measures on Monday, stressing that his broader agenda, including tax cuts, will ultimately lead to long-term economic growth.

MonexUSA's trading director in Washington Juan Perez said Trump did not abandon the important position of tariffs, which had an impact on the market.

The US dollar fell 0.73% against the yen to 143.885 yen. The US dollar fell 0.50% against the Swiss franc to 0.82255 Swiss francs. Trump said he would not remove Fed Chairman Powell before the end of his term, but he again called for lower interest rates and called Powell a "rigid man". The Fed will end its two-day meeting on Wednesday, with the market generally expecting the Fed to keep interest rates unchanged, and its March jobs report released last Friday was solid.

Perez said that market chaos has caused the most damage to the dollar, and I think we are back today to this very low sentiment and downward trend, and people are beginning to realize that overall, we can’t rely on the US market as we used to. This phenomenon has also been shown in the U.S. Treasury market. ”

Currently, the market suggests that the Fed's chances of a rate cut in June are only 37%, down from 64% a month ago. Both Goldman Sachs and Barclays postponed rate cuts from June to July.

The Institute of Supply Management (ISM) April report showed that the U.S. service industry, which accounts for two-thirds of the U.S. economy, grew higher than expected, and the dollar briefly narrowed its decline against the yen after the data was released.

In Europe, the euro was 1.1316 $00, up 0.15%; pound pound was $1.32,950, up 0.21%. The Bank of England will hold a meeting on Thursday, and the market is generally expected to cut interest rates by 25 basis points to 4.25%. Norway and Sweden will also hold meetings this week, and interest rates are expected to remain unchanged.

International News

United States: International tourism is expected to fall by more than 9% this year

United StatesWarnings are that the sharp drop in international tourism will hit tourism revenue. International visits are expected to fall by more than 9% this year due to global negative sentiment towards Trump’s policy, according to a report released by the California Tourism Bureau on Monday. California Governor Newsom said that California's tourism industry had a sharp year-on-year decline in March. The report shows that in 2024, tourists spent $157.3 billion in corporate spending in California, a year-on-year increase of 3%, bringing $12.6 billion in tax revenue to California and local governments and creating 24,000 new jobs. Canadians spent $3.72 billion on travel to California last year, but Canadian tourists fell 12% year-on-year in the first full month after Trump took office, in February.

Trump announced that Washington will host the 2027 NFL Draft, hoping to use sports to increase its support rating

U.S. President Trump announced today that Washington will host the 2027 National Football League (NFL) Draft, saying that this will promote Washington's development. Trump said the three-day event was scheduled to be held at the National Mall and could attract 1 million fans. "These announcements are not only good for the NFL, but also advance the mission of safety, tidy and beautiful in Washington, D.C.," Trump said. Trump has used the NFL as part of his larger effort to increase his approval rating among young white men. In the first few months of his second term, he attended the Super Bowl, Daytona 500, UFC and NCAA Wrestling Championships.

Trump: Oil prices fall. The United States is in a good position to reach an agreement with Russia.

U.S. President Trump said that oil prices have fallen, adding: "We are in a good position to reach an agreement with Russia." Russian President Putin announced a three-day ceasefire, "It sounds nothing, but if you know where we started, you will understand that it means a lot.

Bester: Trump's tariffs, tax cuts and deregulation policies will drive growth and investment

U.S. Treasury Secretary Becent said on Monday that President Trump's tariffs, tax cuts and deregulation agenda will jointly drive long-term investment in the U.S. economy, adding that the U.S. financial markets have "anti-frailty" "Sex, will withstand any short-term turmoil. Becente made a pre-prepared speech at the Milken Institute global conference in Los Angeles, defending Trump's tariff policy in a xmmarkets.cnprehensive defense, stressing that the Republican tax bill that Congress is considering will perpetuate many parts of the president's first term tax cuts, including tax cuts for small businesses. "The main xmmarkets.cnponents of Trump's economic agenda—trade, tax cuts and deregulation—is not an isolated policy. They are interconnected parts, together forming an engine that drives long-term investment in the U.S. economy. "

Netanyahu: Israel is on the eve of a "massive attack on the Gaza Strip"

On May 5 local time, Israeli Prime Minister Netanyahu said that Israel needs to establish a "special national investigation xmmarkets.cnmittee" to investigate Pakistan on October 7, 2023The Islamic Resistance Movement in the Lestan (Hamas) successfully launched the attack and led to the Israeli side's passiveness, but he believes that "it can only be done after the war ends in Gaza." Netanyahu said that Israel is on the eve of a "massive attack on the Gaza Strip" and that "defeating Hamas is something that needs to be done now" before a relevant investigation will be conducted.

The White House said that no final decision has been made on movie tariffs

On May 5 local time, the White House said that no "final" decision has been made on movie tariffs. White House spokesman Kush Desai said that although no final decision has been made, the administration is exploring all options to fulfill Trump's instructions.

The United States refuses to provide Japan with reciprocal tariff exemptions

On Monday, people familiar with the matter revealed that the United States rejected Japan's xmmarkets.cnprehensive exemption of 10% reciprocal tariffs and tariffs targeting specific countries in recent negotiations. Sources said that U.S. officials, including U.S. Treasury Secretary Becent Becent, said in talks with Japanese chief negotiator Ryo Akazawa last week that the Trump administration intends to cut only 14% of specific country tariffs, which were suspended until early July. In the second round of negotiations, the United States emphasized that based on the progress of the negotiations, it will only consider extending the suspension measures of 90 days or reducing tariffs by 14%. Tokyo has been seeking the U.S. to xmmarkets.cnpletely eliminate reciprocal tariffs, 25% auto tariffs and 25% steel and aluminum tariffs. Washington once said it would not negotiate 10% of the world's basic tariffs or tariffs on automobile and steel products.

Domestic News

The box office of the May Day holiday exceeded 700 million yuan, and the performance of listed film xmmarkets.cnpanies was differentiated

The May Day movie market in 2025 rebounded. According to the data from Lighthouse Professional Edition, as of 16:30 on May 5, the total box office (including pre-sale) during the May Day holiday exceeded 720 million yuan, and "Dunting Queen" led the box office list with 185 million yuan. This year's May Day videos are rich in types, meeting the diverse needs of different audience groups. Behind the May Day film, many listed xmmarkets.cnpanies such as Maoyan Entertainment and Chinese Film participated. Judging from the first quarter reports of 2025 disclosed by listed film xmmarkets.cnpanies, the performance of film and television listed xmmarkets.cnpanies is showing a differentiated trend. Industry insiders said that the industry still lacks high-quality supply. In the future, movies must not only be well-made, but also seek breakthroughs in content, aesthetic breakthroughs, genre breakthroughs, and theme breakthroughs.

Incoming passenger flow at various ports in my country increased significantly during the May Day holiday

It was learned from the State Immigration Administration that, with the continuous optimization of entry policies, strong demand for vacation and tourism, and increased international flight capacity, during this year's May Day holiday, the number of incoming foreigners at large international airport ports such as Beijing Daxing, Shanghai Pudong, and Guangzhou Baiyun continued to grow, and the popularity of "cross-border travel" was high. Data shows that from May 1 to May 3, the number of foreigners entering the Beijing port reached 27,000, an increase of 80.8% year-on-year. From May 1 to May 5, the total inbound and outbound passenger flow at Shanghai Port is expected to reach 594,000, with an average of 119,000 per day.The number of visitors increased by about 30.7% year-on-year. Three days before the May Day holiday, 32,000 foreigners entered the Guangzhou Port, an increase of 43% year-on-year.

The above content is all about "[XM Foreign Exchange Platform]: Increased supply limits oil price increases, Trump imposes movie tariffs, and risk aversion pushes gold prices back to around 3330". It is carefully xmmarkets.cnpiled and edited by the editor of XM Foreign Exchange. I hope it will be helpful to your transactions! Thanks for the support!

Only the strong know how to fight; the weak are not qualified to fail, but are born to be conquered. Step up to learn the next article!