USD/CAD, Gold, Oil React to Tech Selloff and Middle East Escalation

Multiple asset classes are experiencing heightened volatility as markets navigate the intersection of a sharp technology sector selloff, escalating Middle East conflict, and the approaching US CPI release. USD/CAD is in focus as the Canadian dollar faces dual pressures — weakening risk appetite weighs on the commodity-linked loonie, while fluctuating crude oil prices driven by Middle East supply fears provide intermittent support. Gold has surged on safe-haven buying, with XAU/USD pushing higher as geopolitical uncertainty compounds inflation anxiety. Brent crude futures remain elevated on concerns that the Middle East escalation could disrupt energy supply chains, adding an inflationary dimension to the already complex macro picture. The Nasdaq 100's sharp decline reflects a broader reassessment of AI-driven tech valuations, further souring market sentiment. For forex traders, the key watchpoint is whether the US CPI data confirms persistent inflation, which would reinforce dollar strength and potentially push USD/CAD higher while pressuring gold. Near-term support for USD/CAD sits at the 1.3600 level, with resistance near 1.3720.