0646 GMT - Gold prices fall as investors weigh the outlook for U.S.-Iran peace negotiations and U.S. monetary policy. In early trading, New York futures are down 0.7% to $4,218.20 a troy ounce. "For now, the yellow metal remains stuck in technical limbo," analysts at Saxo Bank say. Progress in U.S.-Iran negotiations, including efforts to ensure safe passage through the Strait of Hormuz despite diplomatic challenges over Lebanon, eased concerns over energy supply disruptions and reduced fears of a broader inflation shock. However, hawkish remarks from Federal Reserve Chair Kevin Warsh reinforced expectations that U.S. interest rates will remain elevated for longer, reducing the appeal of nonyielding assets. Meanwhile, the U.S. dollar index is up 0.1% to 100.93, making dollar-denominated commodities more expensive for overseas buyers. (giulia.petroni@wsj.com)
Oil Falls on Signs of Progress in U.S.-Iran Peace Talks Despite Challenges
0645 GMT - Oil prices fall after mediators Qatar and Pakistan said the U.S. and Iran agreed on a roadmap aimed at reaching a final deal within 60 days. In early European trading, Brent crude falls 2% to $78.94 a barrel, while the most active August WTI contract is down 0.9% to $75.19 a barrel. Prices had risen earlier after President Trump threatened Iran over its support for Hezbollah. Qatar and Pakistan said Washington and Tehran established a line of communication to ensure safe passage through the Strait of Hormuz, while Iranian negotiator Hossein Ghorbanzadeh signaled progress on sanctions waivers for Iran's oil sales and the release of frozen assets. "Recent developments show that moving towards a more permanent deal will be challenging," analysts at ING say. "The key factor is still whether oil and LNG flows from the Persian Gulf continue to recover, despite all the rhetoric." (giulia.petroni@wsj.com)
