U.S. and Iran Tensions Help Extend Oil Gains, Keep Gold Steady

Oil and gold markets began on different tracks on April 28, as traders focused on geopolitical developments and economic indicators.

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June WTI crude futures in the U.S. gained 0.6% to reach $96.96 per barrel from gains of 2.1% last session, as reported by Reuters. This gain is due to ongoing disruptions in the Strait of Hormuz, an important international oil transportation hub.

Crude Oil Prices Backed by Supply Disruptions

Oil prices remained steady even as negotiations between the U.S. and Iran failed to yield substantial results. In the meantime, the Strait of Hormuz, an important oil transit passage, continued to experience limited traffic in its routes.

According to Reuters, U.S. President Donald Trump has expressed dissatisfaction with Iran’s latest proposal aimed at resolving the conflict. Iranian officials indicated that their proposal excludes discussions on the nuclear programme until hostilities end and shipping disputes in the Gulf are addressed.

Disruption has continued to play out positively for oil prices, as markets responded to supply uncertainty emanating from the Middle East.

Gold Stagnant; Silver Climbs

In the precious metals sector, gold was generally stagnant. Spot gold declined by 0.1% to trade at $4,679.06 per ounce, and U.S. gold futures for June delivery were steady at $4,693.20 per ounce, Reuters reported.

There was also an appreciation in other metals’ prices, as the price of silver rose by 0.7% to $76.03 per ounce. Prices of platinum and palladium appreciated in the early session market.

Market Indicators and Geopolitical Situation

The price movement of commodities on April 28 is an indicator of the geopolitical situation and the macroeconomic environment, including exchange rate dynamics and economic demand from major economies.

In the meantime, with oil prices continuing to rise and precious metals relatively stable, there is no doubt that global commodity markets will remain focused on energy supply and geopolitics.