Lower Oil Prices Lend Support For The Gold Rally

Oil prices fell for a second week running thanks to optimism surrounding renewed U.S.-Iran diplomacy to reopen the Strait of Hormuz. U.S. President Donald Trump announced on Monday that talks between Washington and Tehran would resume l, adding that U.S. allies in the region, including Saudi Arabia, had urged him to suspend attacks. Iran and Oman have managed to reach a preliminary agreement on geographic coordinates for a temporary, partial shipping route through Hormuz, easing immediate supply fears. However, oil prices managed to snap their recent downtrend, with Brent crude for October delivery gaining over 4.5% by early evening on Thursday. Still, oil prices remain nearly $20/bbl below their July 23 peak above $100/bbl in the aftermath of the collapse of 60-day ceasefire between the U.S. and Iran. And, there's no shortage of catalysts keeping a lid on oil prices.