Crude oil prices held steady as the situation in Iran remained uncertain. Copper prices retreated from highs as the recent rally began to curb buying interest. Gold prices fell as investors assessed the Federal Reserve's interest rate path following data indicating heightened U.S. inflationary pressures.
Oil: Prices Largely Unchanged Amid Iran Uncertainty WTI crude edged higher, settling above $101 per barrel, while Brent crude closed near $106 per barrel.
A senior energy trader at CIBC Private Wealth Group noted, "As long as the situation leans towards a diplomatic resolution rather than a full-scale escalation, the market's focus remains on the final outcome—namely, when oil shipments will resume, even if that timeline keeps getting pushed back."
The British Navy reported that a vessel near Fujairah was taken by unauthorized personnel into Iranian waters, though specifics regarding the ship and its registry were not disclosed. This is seen as the latest sign of Iran asserting control over this critical waterway.
The International Energy Agency stated that global oil inventories are declining at a record pace due to supply disruptions in the Middle East stemming from the conflict in Iran, with further declines expected in the coming months.
June WTI rose 15 cents to settle at $101.17 per barrel. July Brent gained 9 cents to settle at $105.72 per barrel.
Base Metals Copper prices fell from a record closing high as the rally started to dampen buying activity.
London copper fell 1.5% on Thursday, ending an eight-session winning streak. The previous advance had been driven by supply risks from global mine disruptions and demand expectations linked to the artificial intelligence sector, buoyed by gains in tech stocks.
An analyst at COFCO Futures indicated that the rise in copper prices is "significantly suppressing" demand. The analyst added that while domestic copper prices may still hover around 105,000 yuan ($15,466.65) per tonne, supported by trading logic betting on AI demand, further gains may be difficult to sustain.
At the close, LME copper was down 1.5% at $13,938.5 per tonne. LME aluminum rose 0.1% to $3,657.5 per tonne. LME nickel fell 1.5% to $18,899 per tonne. LME zinc gained 1.6% to $3,584.5 per tonne. LME tin dropped 2.5% to $54,656 per tonne. LME lead edged up 0.3% to $2,015 per tonne.
Precious Metals Gold prices declined as investors evaluated the Federal Reserve's interest rate trajectory after U.S. data this week showed the war is fueling inflation.
Gold fell as much as 1% on Thursday, dropping below $4,650 per ounce and erasing earlier gains of up to 0.6%.
Since its sharp decline early in the Iran conflict, gold has been trading within a narrow range as investors weigh inflation risks that could keep interest rates elevated.
The Global Head of Institutional Markets at ABC Refinery stated that the market is trying to gauge whether hostilities in the Middle East might conclude and if the Strait of Hormuz will fully reopen.
As of 4:59 PM ET, spot gold was down 0.8% at $4,651.98 per ounce. Spot silver fell 4.6% to $83.5258 per ounce.
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