0733 GMT - Gold prices rise after President Trump walked back an effort to guide commercial ships through the Strait of Hormuz, easing the risk of an immediate escalation in the U.S.-Iran conflict. In early European trading, gold futures in New York rise 2.2% to $4,668.80 a troy ounce. Fears of further conflict help maintain gold's safe-haven appeal, ING's Warren Patterson and Ewa Manthey say. However, a more durable truce would lower inflation risk and in turn limit the chance of Federal Reserve rate hikes, supporting non-yielding gold, they say. "For gold, the next driver will be the outlook for interest rates, with U.S. Treasury borrowing plans and key economic data likely to shape expectations for Fed policy."(josephmichael.stonor@wsj.com)
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Oil Eases as U.S. Appears to Pull Back From Iran Escalation -- Market Talk
0716 GMT - Oil prices fall after the U.S. and Iran pulled back from a potential escalation over attacks in the Strait of Hormuz, easing the danger of further destruction of oil supply in the region. In early European trading, front month Brent crude is down 1.1% to $108.68, while WTI futures for June fall 1.1% to $101.16 a barrel. The U.S. said Iranian attacks on oil facilities in the United Arab Emirates didn't constitute a breach of a cease-fire. "This eased concerns that the attacks would impact more oil supply from the UAE," ANZ analysts say. However, prices remain elevated as the two sides appear no closer to a deal to reopen the Strait, the analysts say.(josephmichael.stonor@wsj.com)
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Iron Ore Higher as China Markets Reopen After Holiday -- Market Talk
0347 GMT - Iron ore is higher in early trade as China markets reopen after the five-day Labor Day holiday. Shipping costs remain elevated, providing support to the metal's price, Nanhua Futures analysts say in a research note. However, the metal seems overvalued at this stage, they say, adding that "going long at current levels offers a poor risk-reward ratio." The most-traded iron-ore contract on the Dalian Commodity Exchange is 2.5% higher at CNY813.5 a ton, Wind data shows. (tracy.qu@wsj.com)
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(END) Dow Jones Newswires
05-06-26 1101ET
