Refining margins surge to all-time highs while gold prices retreat amid shifting central bank demand and Fed policy expectations.
The diesel crack spread reached a record $102, reflecting tight global refining margins amid supply constraints and strong demand. Gold prices fell below $4,400 per ounce as fading Fed rate hike bets reduced safe-haven appeal, though central bank buying remains robust at 289 tonnes this year.
Prior to this, gold had tested resistance near $4,500, supported by ETF inflows and Wells Fargo’s revised 2026 target of $4,900-$5,100. Meanwhile, diesel margins have been under pressure from OPEC+ production cuts and refinery outages, exacerbating supply tightness in key markets.
Market reactions included a modest uptick in oil prices, while equities closed lower as geopolitical tensions in the Strait of Hormuz added to risk aversion.