Oil Holds Steady Gold Drops Amid Geopolitical Tensions

Global markets await outcomes of Russian conflict and trade developments as commodity prices remain volatile.

Topic
Oil

Gold

Oil

Oil prices stabilize amid Russian sanctions threats

and Oil prices held firm after a notable rise, driven by U.S. President Donald Trump’s call for Russia to swiftly agree to a ceasefire with Ukraine or face new economic sanctions. These comments raised concerns over potential disruptions in oil supplies from Russia, a major OPEC+ producer.

Brent crude hovered near $70 a barrel, after jumping 2.3% in the previous session—its largest gain in two weeks.
West Texas Intermediate (WTI) traded around $67 a barrel.

Trump stated he may set a new 10–12 day deadline for Russia to halt its operations, warning of potential “secondary sanctions” for non-compliance. His remarks coincided with new EU sanctions, including measures against India’s Nayara Energy.

Markets are now focused on:

The U.S. trade agreement deadline on August 1.
The upcoming OPEC+ meeting, which will set production policy for September.

Market indicators suggest oil is on track for monthly gains, supported by strong summer demand and tight inventories, though concerns persist about a potential oversupply by year-end.

Gold

Gold slips, dollar strengthens amid China ceasefire watch

Spot gold prices fell 0.7% to $3,313.18/oz, pressured by a stronger dollar and easing fears of a U.S.–EU trade war following a new tariff agreement between the two blocs.

This breakthrough boosted hopes of extending the U.S.–China trade truce, as American and Chinese officials began two-day talks in Stockholm. The easing of tensions reduced safe-haven demand for gold.

Investors are also eyeing the upcoming Federal Reserve decision on interest rates. While no change is expected, markets will be watching for any signs of a shift in monetary policy.

Gold has gained over 25% year-to-date, driven by global instability and geopolitical risks.
The Bloomberg Dollar Index rose 0.8%.
Silver and platinum prices declined, while palladium edged higher.

Gold performance is typically sensitive to interest rate trends, as lower borrowing costs tend to boost the appeal of non-yielding assets like gold.

Oil Holds Steady Gold Drops Amid Geopolitical Tensions

Oil Holds Steady Gold Drops Amid Geopolitical Tensions

Related Topics