The recent rebound in oil prices may not hold, and deeper declines could be ahead if geopolitical tensions worsen, according to Peter McGuire, CEO of Trading.com.

Brent crude rose toward $65 a barrel earlier on April 8 after hitting a four-year low in the previous session. West Texas Intermediate briefly traded above $61.

But McGuire believes this bounce is temporary. “Many are calling $45 could be the handle. But I’m not prepared to go that low. I still think it’s got a mid-50 handle,” he said, pointing to the possibility of oil slipping to around $56 or even lower if the US-China trade standoff escalates.

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Crude has already lost 15% in just a week, and McGuire warned that markets are yet to fully price in the risks from the trade war. “Since Sunday night, Sydney time, it was electric,” he said, describing the volatility in energy futures as extreme and unpredictable.

Global markets have been on edge after the latest tariffs from the US, with both Washington and Beijing showing no signs of backing down. McGuire called it an “incredible geopolitical situation” that could weigh on energy prices

for longer than anticipated.

Gold, another key commodity and a safe haven, has also seen sharp swings. On April 7, spot gold dipped 0.3% to $3,027.90 an ounce—its lowest since March 13.

In India, 24-carat gold prices fell to ₹90,650 per 10 grams. McGuire attributed the drop to a stronger US dollar and forced selling triggered by margin calls and algorithmic trades, but expects the correction to be short-lived.

Also Read: Gold may rise to $8,000 an ounce over next few years: Swiss Asia

“Margin calls and algo trading have really impacted asset prices,” he said, adding that gold could regain momentum once current pressures ease.

For the entire interview, watch the accompanying video

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