Noor Capital | Mohammed Hashad Interview on Dubai TV – May 26

U.S.-European Talks Boost Markets

Mohammed Hashad, Head of Research and Development at Noor Capital and a member of the American Association of Technical Analysts, commented on the performance of global markets amid recent developments. He discussed U.S. President Donald Trump’s decision to extend the deadline for imposing 50% tariffs on European Union countries until June 9, which may coincide with the end of a 90-day freeze period. Hashad noted that this decision improved investor sentiment and increased risk appetite, positively impacting European stocks. The STOXX Europe index celebrated the decision, while the German DAX recorded gains of 1.7%, and the French CAC added 1.2% to its value.

Hashad highlighted that gold prices were the most negatively affected by this decision, experiencing declines since the start of the trading session, despite reaching record highs in the previous session. He dismissed the notion that this drop signals the end of gold’s upward trend, affirming that the overall movement remains bullish, supported by significant purchases from central banks seeking to diversify their reserves away from the U.S. dollar, alongside investments in exchange-traded bonds and purchases by companies and individuals. He considered the current decline a natural reaction to the easing of trade tensions, predicting that gold could reach levels of $3,360, then $3,410, and potentially revisit its previous peak of $4,500.

Regarding oil, Hashad pointed out the volatility in its performance during the session, initially rising due to eased tensions between the U.S. and the EU, which reduced concerns about declining global demand, before retreating again. He emphasized that OPEC decisions remain the primary factor influencing oil prices, with plans to increase production by 411,000 barrels per day, reaching 2.2 million barrels per day by the end of November. He added that fears of declining demand and stagflation continue to dominate oil price movements, keeping it in a downward trend despite the temporary calm.

Hashad concluded by stating that Trump’s decision represents a temporary de-escalation of trade tensions, similar to what occurred in negotiations with China, without indicating a fundamental shift in trade policy between the United States and the European Union.