Oil prices fluctuated as traders weighed conflicting signals about the next U.S. move on Iran.
Gold fell, with the possibility of a Federal Reserve rate hike still on the table before year-end, keeping investors in wait-and-see mode.
Copper moved lower.
Crude Oil: Prices Whipsaw as Traders Assess Mixed Signals on Iran
Crude oil swung between gains and losses as traders weighed differing signals regarding America's next steps on Iran.
The December Brent contract, expiring Friday, fell on Thursday to near $115 a barrel.
Brent crude reversed its decline in post-settlement trading after reports said a senior U.S. Navy admiral briefed President Trump on options for striking Iran.
WTI rose 0.8% to $102.82 a barrel at the Asian open on Friday.
President Trump has repeatedly hinted that military action against Tehran could resume after the midterm elections, possibly in coordination with Israel.
Reports said U.S. officials have told several Middle Eastern countries and regional allies to prepare for possible renewed military operations after the vote.
The latest reports revived a risk premium that had faded on signs of diplomatic efforts.
Iran's semi-official Tasnim news agency reported that Iran had received a letter from U.S. Vice President Vance addressed to its top security official.
Diplomatic contacts between Washington and Tehran have been on-and-off since the U.S. and Israel launched the war in late February, but negotiations have repeatedly broken down.
The talks come ahead of the U.S. midterm elections, and markets are also watching this week's Israeli election results.
Both elections will shape the future course of the war.
"Continued headlines about a possible deal continue to weigh on the crude market," said Ryan McKay, senior commodity strategist at TD Securities. "We expect this to persist through the U.S. midterms, but we don't think Iran will agree to a deal on the eve of such a tense election."
December WTI fell 0.8% to settle at $102 a barrel; the December Brent contract, expiring Friday, fell 0.4% to settle at $114.88 a barrel; the more active January contract fell 0.8% to settle at $110.80 a barrel.
Base Metals
London copper fell on Thursday even as an import demand gauge hit a record high, pointing to tightening supply in the spot market.
The potential U.S. import tariff on refined copper has driven large volumes of the metal to America, leaving global inventories increasingly concentrated in the United States.
Analysts at BMO Capital Markets said a growing disconnect is emerging between lackluster copper prices and an increasingly tight spot market.
At the close, LME copper fell 0.8% to $14,356.50 a ton; LME aluminum rose 0.2% to $3,078.50 a ton; LME nickel fell 0.4% to $15,536 a ton; LME zinc rose 0.5% to $3,883 a ton; LME tin fell 2% to $49,697 a ton; LME lead rose 0.9% to $1,915 a ton.
Precious Metals: Gold Declines
Gold fell even though the Federal Reserve held borrowing costs steady in October, with the possibility of a rate hike before year-end still lingering.
Gold at one point dropped 1.3% to around $4,015 an ounce, reversing modest gains from the previous three sessions.
Ole Sloth Hansen, head of commodity strategy at Saxo Bank AS, said gold has hovered around the $4,000-an-ounce mark for most of the week, with investors "in wait-and-see mode."
As of 5 p.m. New York time, spot gold fell 1.1% to $4,021.52 an ounce; spot silver fell 3.4% to $52.153 an ounce.
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