Hormuz Uncertainty and Reserve Boosts Support Oil, Gold Markets

Oil prices have remained buoyant due to ongoing concerns about the Strait of Hormuz. The uncertainty surrounding this critical shipping lane has kept investors on edge, supporting oil prices. Meanwhile, a shift in sentiment among money managers has seen them reduce their net long positions in both NYMEX WTI and ICE Brent.

Last week, gold prices surged after the People's Bank of China increased its gold reserves by 640koz (around 20 tonnes), marking the largest monthly addition since October 2023. This move has contributed to a continued rally in gold markets.

Grain markets have also seen an uptick, with CBOT wheat rising around 2% as renewed concerns over Black Sea exports resurfaced.