Crude Oil Falls Below $110 as Trump Delays Iran Strike, Gold Prices Climb
Global Commodity Markets Trade Mixed Amid Easing Tensions with Iran
Commodity markets experienced a mixed trading session on May 19, with crude oil easing after President Donald Trump announced that he had called off a planned strike on Iran following requests from key Persian Gulf allies for more time to negotiate a nuclear deal.
Brent crude slipped below $110 a barrel, a decline from its previous session gain of 2.6 percent. Meanwhile, West Texas Intermediate crude for July delivery traded below $103 a barrel. Oil prices cooled after Trump said leaders from Qatar, Saudi Arabia, and the United Arab Emirates urged the US to delay military action, expressing confidence that a diplomatic agreement with Iran could still be reached.
However, concerns around supply disruptions and geopolitical tensions continued to keep oil prices elevated despite the temporary pullback. In the base metals segment, trends remained muted. Copper traded marginally lower, while aluminium and zinc edged slightly higher amid cautious sentiment across commodity markets.
Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns
Gold extended gains as easing fears of an immediate escalation in the Iran conflict helped reduce some inflation concerns that had recently pressured bullion prices. Spot gold rose as much as 0.4 percent to trade near $4,585 an ounce, a gain of 0.6 percent from the previous session. Silver climbed 1.2 percent to $78.68 an ounce.
Market participants said gold continued to remain supported by geopolitical uncertainty even as expectations of elevated global interest rates capped sharper upside. Treasury yields remained near multi-year highs as elevated energy prices continued to fuel inflation concerns globally, reducing the appeal of non-yielding assets such as bullion.
On the domestic front, MCX prices reflected a combination of global commodity trends and rupee movement, with volatility remaining relatively contained.
| Commodity | Previous Session | Current Session |
|---|---|---|
| Brent Crude | 2.6% gain | Below $110 a barrel |
| West Texas Intermediate Crude | - | Below $103 a barrel |
| Gold | 0.6% gain | 0.4% gain, $4,585 an ounce |
| Silver | - | 1.2% gain, $78.68 an ounce |
Read also: Gold and Silver Prices in India: A Review of Current Rates Across Major Cities
Investor Takeaway
Oil prices may remain volatile due to geopolitical tensions.
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