Diplomacy Lowers Oil Prices, Supporting Gold and Silver

The US-Iran diplomatic efforts are having a positive impact on oil prices as they decrease due to hopes of a truce. The Strait of Hormuz, which has been a central oil-market risk, is being partially offset by diplomacy.

Silver and gold prices have seen an increase in early trading, with spot silver near $64.760, up 1.62%, and spot gold near $4,300.00 an ounce, up 0.62%. The Fed's September rate hike has reinforced the view that another 25-basis-point increase in October is likely.

The US dollar index is near 101.2 after touching a two-month high, while the 10-year Treasury yield remains near the 5.1% area. Despite this, lower crude oil prices reduce the immediate inflation impulse supporting yields and the dollar.