Commodity Corner: Oil Slips on US-Iran Peace Hopes, Gold Rebounds
Crude retreats as investors assess ceasefire roadmap, while bullion recovers from recent lows amid softer inflation expectations.
US, June 22 : Commodity markets ended mixed on June 22 as traders weighed diplomatic developments between the United States and Iran alongside continued strength in the US dollar.
Crude oil prices moved lower after mediators announced progress in negotiations between Washington and Tehran, raising hopes for a longer-term easing of tensions in the Middle East. Brent crude fell below $80 a barrel after surrendering earlier gains of more than 2%, while West Texas Intermediate traded near $76 a barrel.
A joint statement from mediators Qatar and Pakistan said both sides had agreed to a framework aimed at securing a final accord within 60 days. Technical-level talks are scheduled to continue in Switzerland later this week, keeping market participants focused on the pace of diplomatic progress.
However, sentiment remained cautious after US President Donald Trump issued fresh warnings toward Iran, while Tehran announced the closure of the Strait of Hormuz, a key global energy shipping route.
In precious metals, gold recovered strongly after touching its lowest level in more than a week during the previous session. The metal drew support from lower energy prices and easing concerns over inflationary pressures. Spot gold climbed 1.2% to $4,209.03 an ounce, while August gold futures settled 0.5% lower at $4,225.80.
Elsewhere, silver edged up 0.1% to $64.97 an ounce after recording a weekly decline of 4.6%. Platinum and palladium also posted modest gains.
The US dollar remained firm as investors awaited greater clarity on the proposed US-Iran agreement, with lingering geopolitical risks continuing to underpin demand for the greenback despite signs of diplomatic engagement.
