The gold price had to give up some of yesterday’s gains in the wake of the military escalation in Iran.
Despite ongoing peace talks, US forces carried out attacks in southern Iran on Monday. Targets included boats that apparently wanted to lay mines and rocket launchers. The USA described the operations as defensive measures. According to media reports, Iran’s chief negotiator and foreign minister were in Doha on Monday for talks with the Qatari prime minister. It was about a possible agreement with the USA to end the war, which has now lasted three months. Washington and Tehran had previously dampened hopes of an imminent breakthrough. Concerns about inflation and interest rates have increased again. According to CME Group’s FedWatch tool, one applies Interest rate increase the US Federal Reserve before the end of the year as relatively likely. A probability of over 56 percent is indicated for this scenario.
On Tuesday morning, the gold price was held at levels compared to Friday. By around 8 a.m. (CEST), the most actively traded gold futures (June) had increased in price by $4.60 to $4,527.80 per troy ounce.
Crude oil: comeback of uncertainty
The constant back and forth regarding the peace negotiations between the USA and Iran continues to strain the nerves of market players. Although they hope for an end to the war because a prolonged conflict would be very bad for the global economy, it will likely take months to resolve the disruptions in raw material supply chains. So far the worst has been prevented by reducing inventory reserves, but this cannot continue indefinitely. The American Petroleum Institute’s weekly report (10:30 p.m.), which is usually due on Tuesday evening, will be on Wednesday evening due to yesterday’s US holiday. As a reminder, the most recent update reported a 9.1 million barrel inventory decline.
On Tuesday morning, the price of oil was mixed. By around 7:35 a.m. (CEST), the next due WTI future had fallen by 4.65 dollars to 91.95 dollars compared to Friday, while its Brent counterpart had risen by 1.94 dollars to 95.36 dollars.
Jörg Bernhard, editorial team at finanzen.net