Oil prices edged lower in volatile trading on Tuesday as traders assessed conflicting signals regarding supply disruption risks in the Middle East. Gold fluctuated near the $5,000 mark after two consecutive days of gains, with investors evaluating whether prices had bottomed out following a historic sell-off. Prices for copper and aluminum also declined.
Crude Oil: Oil Prices Decline Slightly as Traders Monitor Middle East Supply Risks Oil prices slipped during choppy trading on Tuesday as market participants interpreted mixed messages about potential supply disruptions in the Middle East. WTI crude edged lower, settling near $64 per barrel, ending a two-day rally. Meanwhile, conflicting reports emerged regarding progress in diplomatic talks between the United States and Iran. Omani Foreign Minister Badr Albusaidi stated that discussions during last week's Iran-U.S. talks were productive, causing oil prices to dip following the news. Minutes later, Axios reported that U.S. President Donald Trump might deploy a second aircraft carrier to the Middle East if negotiations over Iran's nuclear program and other issues fail, prompting prices to recover some losses. This episode highlighted the market volatility facing investors. Many are looking to Wednesday's meeting between Trump and Israeli Prime Minister Benjamin Netanyahu for clearer signals. Netanyahu is widely expected to urge the U.S. to take a tougher stance on Tehran's ballistic missile program. Amid a lack of clear signals about the direction of Middle East conflicts, oil prices were also pressured by weaker equity markets. At market close: March WTI crude in New York fell 0.6%, settling at $63.96 per barrel. April Brent crude declined 0.4%, settling at $68.80 per barrel.
Precious Metals: Gold Fluctuates Near $5,000 Gold prices traded in a narrow range near $5,000 after two straight days of advances, as investors assessed whether the market had found a floor following a historic sell-off. On Wednesday, spot gold moved within a tight band while silver prices declined. Since hitting a record high on January 29, gold has retreated approximately 10%, though it remains significantly higher for the year. The speculative-driven rally in precious metals abruptly halted in late January, when silver suffered its largest single-day drop on record and gold posted its biggest decline since 2013. However, many factors that supported the multi-year uptrend remain intact, including heightened geopolitical risks, continued substantial central bank purchases, and lower interest rates. "Recent volatility has raised questions about gold's value as a hedge against geopolitical and market turbulence. We believe these concerns are overstated and that gold's upward trend will resume," wrote Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, in a report. As of 4:11 PM New York time: Spot silver fell 3.04% to $80.864 per ounce. Spot gold declined 0.62% to $5,026.65 per ounce.
Base Metals: London Copper Declines Prices for copper and aluminum moved lower. Copper futures in London trended downward, approaching $13,000 per metric ton, while New York copper prices hovered near $5.90 per pound after gaining over 2% in the previous two sessions. High price levels continue to dampen industrial demand. "We are seeing some consolidation around $6 per pound, with end-users showing some hesitation to buy at elevated prices. However, we expect price momentum to continue in the coming years as demand keeps rising while supply struggles to keep pace," said RBC Capital Markets analyst Sam Crittenden in a report. At the close: LME copper fell 0.52% to $13,108.0 per metric ton. LME aluminum declined 1.04% to $3,093.0 per metric ton. LME nickel rose 0.81% to $17,490.0 per metric ton. LME zinc advanced 0.58% to $3,395.0 per metric ton.