Crude oil prices continued to fall Wednesday as supply concerns eased with the Strait of Hormuz remaining open. Gold broke below $4,000 an ounce, ending a three-year bull market. Industrial metals in London fell amid a stronger dollar and hawkish Fed stance.
Crude: Oil prices extended losses as more tankers passed through the Strait of Hormuz.
Prices continued to slide as the US and Iran made progress in peace talks and more tankers openly transited the Strait of Hormuz, easing supply shortage fears.
WTI fell, settling near $70 a barrel; global benchmark Brent crude settled below $74.
"With the Strait of Hormuz remaining open and traders eyeing potential production maximization by OPEC members including Iran, oil prices are dropping sharply," said Jay Hatfield, CEO of Infrastructure Capital Management.
Hatfield said: "We predict WTI could break below $60 in the next two months as output rises and inventories rebuild."
Ships are leaving satellite signals on while transiting the Strait of Hormuz, indicating increased confidence among owners in safe passage.
The International Maritime Organization said it has received security guarantees allowing hundreds of vessels to leave the Persian Gulf.
Although negotiations may be protracted and positions differ, both Washington and Tehran say talks to end the war have made initial progress.
The IEA estimates UAE oil exports have recovered to nearly 85% of pre-war levels.
WTI crude for August delivery fell 3.92% to settle at $70.34 a barrel.
Brent crude for August fell 4.33% to settle at $73.74 a barrel.
Precious metals: Gold falls below $4,000, ending multi-year bull market
Gold prices fell below $4,000 an ounce for the first time since November. The three-year bull run ended as the dollar strengthened and rate hike expectations rose.
Gold fell as much as 3.8% to below $3,960 an ounce. Silver fell below $60 an ounce for the first time since December. The Bloomberg Dollar Spot Index rose nearly 1% this week, making dollar-priced gold more expensive for holders of other currencies.
Darwei Kung, head of commodities at DWS Group, said gold is clearly trading in line with market expectations of US rate hikes as Fed Chair Kevin Warsh's focus on inflation reinforces expectations of a more hawkish policy.
At 4:17 p.m. NY time, spot gold fell 3.0% to $3,992.44 an ounce, silver fell 6.9% to $57.31 an ounce, and palladium and platinum also fell.
Base metals: Copper extends losses
Copper and industrial metals continued to fall Wednesday as a stronger dollar and hawkish Fed stance pressured demand outlook.
Investors' growing conviction that rates will stay high weighed on risk assets, while a stronger dollar exacerbated headwinds for dollar-priced commodities.
At London market close:
LME copper fell 2.1% to $13,086.5/mt;
LME aluminum fell 3.4% to $3,122.5/mt;
LME zinc fell 2% to $3,421.5/mt;
LME nickel fell 2.1% to $16,818/mt;
LME tin fell 2.9% to $49,681/mt;
LME lead fell 1.1% to $1,913/mt.
