Gold Off Two-month Peak as Traders Seek Inflation Cues

Gold bars and 'sovereign pounds' coins at Bird & Co. in Hatton Garden, London (Reuters)
Gold bars and 'sovereign pounds' coins at Bird & Co. in Hatton Garden, London (Reuters)
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Gold Off Two-month Peak as Traders Seek Inflation Cues

Gold bars and 'sovereign pounds' coins at Bird & Co. in Hatton Garden, London (Reuters)
Gold bars and 'sovereign pounds' coins at Bird & Co. in Hatton Garden, London (Reuters)

Gold edged lower on Thursday, after touching a more than two-month high earlier in the session, as traders paused after a rally fueled by cooling US inflation, with attention turning to an upcoming producer price report for clues to prospects of near-term Federal Reserve rate hikes.

Spot gold fell 0.5% to $4,383.53 per ounce ‌by 0601 GMT, after ‌jumping about 1% to its highest since ‌June ⁠5. US gold futures ⁠for December delivery fell 0.6% at $4,440.80.

"Gold is in consolidation mode today after its post-CPI gains, with near-term expectations of a Fed rate hike being dialed back another notch," said Tim Waterer, chief market analyst at KCM Trade.

"Traders appear content to wait for confirmation from the upcoming PPI data before committing to the next leg higher."

Prices have ⁠risen over 8% so far this month, ‌as traders scale back US interest rate ‌hikes bets amid recent softer economic data.

On the geopolitical front, Iran and ‌the US remain at loggerheads over efforts to agree on a ‌permanent end to the war, according to a senior Iranian source, who said there had been no progress in talks to revive the interim deal agreed in June.

On monetary policy, Fed policymakers are likely ‌to feel little fresh urgency to raise interest rates next month after data on Wednesday showed inflation ⁠cooled on ⁠a year-over-year basis for a second straight month.

The consumer price index rose 3.4% in the 12 months through July, down from 3.5% in June, in line with economists' expectations. Traders are now pricing in only a 40% chance of a hike at the September meeting, down from about 54% seen a week before, according to the CME FedWatch Tool.

Lower rates tend to support gold by lowering the opportunity cost of holding the non-yielding asset.

In other metals, spot silver lost about 0.3% to $65.09 per ounce, having climbed to its highest since June 22 in the previous session.

Platinum lost 0.8% at $1,741.96, and palladium fell 0.9% at $1,357.29.



Oil Prices Fall after Trump Hails 'Good' Talks with Iran

FILE PHOTO: A small tanker sails near an oil refinery, in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026.  REUTERS/Issei Kato/File Photo
FILE PHOTO: A small tanker sails near an oil refinery, in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026. REUTERS/Issei Kato/File Photo
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Oil Prices Fall after Trump Hails 'Good' Talks with Iran

FILE PHOTO: A small tanker sails near an oil refinery, in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026.  REUTERS/Issei Kato/File Photo
FILE PHOTO: A small tanker sails near an oil refinery, in the Keihin Industrial Zone in Kawasaki, south of Tokyo, Japan March 17, 2026. REUTERS/Issei Kato/File Photo

Oil prices fell on Wednesday after President Donald Trump said US and Iranian representatives had met for "very good" talks at the United Nations.

The international benchmark, Brent crude, and main US contract, West Texas Intermediate, dipped to $98.91 and $89.93 per barrel respectively in early Asian trade -- well below the symbolic $100 mark they have smashed repeatedly since the Middle Eat war broke out in February, AFP reported.

The three-hour meeting was "very good", "very productive" and "they have another one scheduled in the very near future", Trump told reporters as he met Ukrainian President Volodymyr Zelensky.

Trump's announcement came just hours after he delivered a bellicose address to the UN in which he said he faced a "big decision" on whether to make a deal with Iran or "annihilate the Islamic Republic and do it quickly".

Nearly seven months after US-Israeli strikes on Tehran triggered the conflict, the foes remain at an impasse, with Iran keeping the Strait of Hormuz closed and the United States persisting with a counter-blockade of Iranian ports.

"The three-hour US-Iran meeting matters because it shifts the market from pure escalation pricing toward a genuine diplomatic process, even if a final deal still looks distant," said Stephen Innes at Quintex Intel.

Trump has pledged that oil would come down "as soon as" the United States wins the war.

The dip in oil prices came as the world's biggest crude exporter Saudi Arabia reportedly rebooted operations along its East-West Pipeline -- a crucial oil export route shut down by the conflict rocking the Middle East.

Riyadh said this month that drones launched from Iraq had forced the closure of the pipeline, which it had increasingly used to bypass the lockdown of the Strait of Hormuz by Iran.

The kingdom is aiming to resume exports later this week, Bloomberg quoted a source as saying.


Euro Zone Yields Fall after Iran Raises Prospect of Hormuz Reopening

Euro banknotes (Reuters)
Euro banknotes (Reuters)
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Euro Zone Yields Fall after Iran Raises Prospect of Hormuz Reopening

Euro banknotes (Reuters)
Euro banknotes (Reuters)

Euro zone bond yields fell for a second straight day on Tuesday, hitting their lowest in almost two weeks after Iran raised the prospect of reopening the Strait of Hormuz and Washington hinted it could restart talks with Tehran, pushing oil prices lower.

Germany's 10-year bond yield, the benchmark for the bloc, fell 1 basis point to 3.44% after rising as much as 4 bps earlier in the session. It fell 7 bps on Monday as energy prices retreated.

A senior Iranian official told Reuters that the strait, which carried about a fifth of global energy supplies before the war, could reopen within seven days if the US also lifts its blockade of Iranian ports.

The official added that Iran's delegation to a UN meeting in New York this week has full authority to revive diplomacy over the conflict.

US Secretary of State Marco Rubio told NBC's "Today" show that Washington was open to speaking with Tehran.

The dip in energy prices helped pull yields lower globally after a surge in recent weeks fuelled by expectations of further interest-rate hikes to combat energy-driven inflation. Traders are pricing in around 35 bps of additional European Central Bank tightening this year, down from 40 bps on Friday.

Germany's two-year bond yield, which is sensitive to interest-rate expectations, fell 1 bp to 3.19%, following a 6-bp drop on Monday.

Rabobank senior rates strategist Lyn Graham-Taylor said lower oil prices following the Iranian comments were weighing on bond yields.

Brent crude futures were last down 1% to $100 a barrel after earlier falling to $97.40, the lowest in two weeks.


Libya's NOC Says Sharara Crude Pipeline Closure Losses at 130,000 bpd

General view of the Sharara oil field in Libya (Reuters)
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Libya's NOC Says Sharara Crude Pipeline Closure Losses at 130,000 bpd

General view of the Sharara oil field in Libya (Reuters)

Libya's National Oil Corporation said on Tuesday that the Sharara-Zawiya crude loading pipeline closure has led to daily losses of about 130,000 barrels per day, Reuters reported.

An armed military group closed valve seven on the Sharara crude pipeline to Zawiya port on Monday, resulting in a significant decline in production at the Sharara oilfield, the National Oil Corporation said in a statement.