Oil slides on US-Iran talk hopes as gold climbs and US stocks end mixed

what happened

Hopes for a diplomatic breakthrough between Washington and Tehran pushed oil prices sharply lower on Monday. West Texas Intermediate shed 7.4% in the session and held near $96 a barrel early on Tuesday. Brent settled below $105, according to the overnight market summary published by TradingView.

Gold benefited from the same backdrop. The metal gained 1.9% in the previous session, its strongest rise in two months, and traded above $3,950 an ounce. Silver edged up 0.3% to $50.77 after rising more than 3% on Monday.

US equities ended mixed: the S&P 500 lost 0.51% to close at 7,541.40 points, the Nasdaq fell 1.07%, and the Dow Jones added 0.41%. The dollar index slipped to 101.76 after touching a one-month low, while the 10-year Treasury yield held at 4.9145%.

why it matters

Cheaper crude eases inflation worries and supports demand for gold as a store of value. Investors are also awaiting the US midterm elections and the Reserve Bank of Australia decision, so asset prices remain highly sensitive to Iran headlines.

market impact

Oil: peace-talk hopes pressure Brent; gold: easing inflation worries support demand

• ▼Brent pressure down — hopes for US-Iran talks lower the risk of supply disruptions
• ▲Gold pressure up — cheaper oil eases inflation fears and supports demand for the metal

tags

instruments