Oil Slips from Six-Month Peak as Gold Struggles Under US Rate Pressure

Crude oil and gold prices declined during Monday trading sessions, driven by persistent anxieties over energy supplies. Investors are currently monitoring the upcoming United States Federal Reserve meeting and inflation data releases. These factors have placed downward pressure on precious metals following their most significant weekly loss since June.

Energy Market Dynamics

Oil futures fell on Monday after approaching six-month peaks late last week. This correction occurred despite ongoing fears regarding supply disruptions caused by Houthi attacks. By 02:32 GMT, West Texas Intermediate (WTI) futures dropped $2.14, or 2.07%, to $101.13 per barrel. Brent crude contracts simultaneously decreased by $2.12, or 1.82%, settling at $114.60 per barrel.

The previous Friday saw prices rise approximately $3 upon settlement due to Houthi-induced supply worries. Brent concluded the week with a 6% gain, while WTI recorded a 2.3% increase. Saudi Arabia partially reopened its main airport on Sunday after sustaining damage from earlier attacks. The Houthis have pledged to continue targeting the facility.

Strategic Supply Measures

To enhance supply resilience, Saudi and Singaporean oil ministers announced that Riyadh will begin storing crude oil in Singapore starting in the second half of 2027. In the United States, the Department of Energy authorized the release of 400,000 barrels from Strategic Petroleum Reserves on Friday. This move aims to address supply interruptions at a Louisiana refinery.

Precious Metals Performance

Gold prices stabilized near a three-month low as markets awaited the Federal Reserve’s policy decision this week for clues on interest rate trajectories. Spot gold slipped 0.2% to $3,987.45 per ounce by 00:37 GMT, having hit its lowest point since mid-July in the prior session. The metal suffered a 4% weekly loss on Friday, marking its steepest decline since June.

December delivery US gold futures also fell 0.2% to $4,000.80 per ounce. Markets are eyeing the Fed’s monetary policy meeting alongside Personal Consumption Expenditures (PCE) data. PCE serves as a key indicator for the central bank’s efforts to curb inflation toward its 2% target.

Royters reported, citing a source familiar with the matter, that Qatari mediators visited Tehran on Sunday. The visit aimed to ease regional tensions in coordination with the United States. Among other precious metals, spot silver rose 0.2% to $54 per ounce. Platinum dipped 0.1% to $1,549.42, while palladium gained 0.4% to reach $1,047.90.