0736 GMT - Gold futures rise after posting their first weekly gain since May, as weaker U.S. jobs data and lower oil prices reduced expectations of interest-rate hikes by the Federal Reserve. The sharp drop in crude prices--driven by the recovery of flows through the Strait of Hormuz and OPEC+'s decision to hike output--eased concerns over inflationary pressures and strengthened the case for lower interest rates, providing a tailwind for non-yielding assets. Still, "short-dated U.S. bond yields still signal the risk of a rate hike later this year," analysts at Saxo Bank say. "A further easing in those expectations is needed to support bullion, which for now continues to consolidate." In early trading, New York gold futures rise 1% to $4,166 a troy ounce. (giulia.petroni@wsj.com)
Oil Falls on OPEC+ Output Hike, Hormuz Flows Recovery
0729 GMT - Oil prices fall on OPEC+'s decision to hike production and the continued recovery in shipping through the Strait of Hormuz. In early European trading, Brent crude is down 0.4% to $71.84 a barrel, while WTI futures edge 0.3% lower to $68.48 a barrel. "Brent and Dubai crude time spreads remained in contango, reflecting ample near-term supply, and Gulf producers are expected to lower official selling prices further to maintain competitiveness," says Soojin Kim from MUFG. Contango occurs when near-term futures prices are lower than longer-dated contract prices. Saudi Arabia's exports have surged close to prewar levels, while the United Arab Emirates is also restoring flows at a rapid pace, contributing to a looser physical market, according to analysts. (giulia.petroni@wsj.com)
