Two oil tankers have reportedly been destroyed in the ongoing Iran conflict, removing approximately 400,000 barrels of crude oil from global supply, around 63 million litres. While this represents only a small fraction of daily global oil production, the symbolic impact on already fragile supply chains is significant. Shipping insurers, freight operators and energy markets are responding quickly, with oil prices remaining highly volatile as traders assess how exposed key transport routes may become if tensions escalate further.
Against this backdrop, the latest US CPI reading arrived with surprisingly little market reaction. Inflation appears stable for now, but the reality is that global economic output remains heavily dependent on energy, and particularly oil. If supply disruptions continue and reserves begin drawing down faster than expected, the conversation may shift away from inflation control toward a more uncomfortable outlook for growth. Modern economies are built on the availability of cheap and reliable energy, and when that assumption is challenged, production and economic expansion often slow with it.
Gold and silver eased slightly overnight after recent strength, although the broader technical picture remains constructive. Gold continues to hold above its 50-day moving average, which currently sits near the US$5,000 per ounce level. Should prices test that region, markets will be watching closely to see whether buyers step in to defend the trend or if additional downside pressure begins to emerge.
While CPI currently suggests inflation remains under control, attention will soon shift to US Producer Price Index data due next week. Both CPI and PPI reports reflect conditions from the previous month, meaning the data may not yet capture the full impact of rising energy prices and tightening supply chains. If oil prices remain elevated through the coming weeks, the next round of inflation readings could begin to reflect higher production and transportation costs, potentially pushing both CPI and PPI higher again.
Technical Indicators FOR GOLD – Weekly Projections
Daily technical indicators – Strong Buy, leading into weekly projection of STRONG BUY
Weekly technical indicators chart.
| RSI(14) | Buy |
| STOCH(9,6) | Buy |
| STOCHRSI(14) | Sell |
| MACD(12,26) | Buy |
| ADX(14) | Overbought |
| Williams %R | Buy |
| CCI(14) | Buy |
| ATR(14) | High Volatility |
| Highs/Lows(14) | Buy |
| Ultimate Oscillator | Neutral |
| ROC | Buy |
| Bull/Bear Power(13) | Buy |
The Producer Price Index, commonly referred to as PPI, measures the average change in prices that producers receive for their goods and services before those products reach consumers. In simple terms, it tracks inflation at the wholesale or production level rather than at the retail level. While CPI measures what consumers pay at the checkout, PPI measures what businesses are paying or receiving earlier in the supply chain, such as raw materials, energy, manufacturing inputs and wholesale goods.
Because it sits earlier in the economic pipeline, PPI is often seen as a leading indicator of future consumer inflation. If producers begin paying significantly more for energy, metals, transport or other inputs, those costs are frequently passed through to consumers over time. Rising oil prices, for example, can increase manufacturing costs, freight costs and packaging costs, which eventually filter through into higher retail prices. For this reason, economists closely watch PPI movements to understand whether inflation pressures are building beneath the surface before they appear in consumer price data.