Oil Price Crash Lifts Metals Ahead of US-Iran Talks Outcome

The ongoing US-Iran talks have taken center stage in the global market. President Trump announced that the US will start holding new talks with Iran on Monday, and he canceled strikes that were scheduled due to Iran and several US allies requesting additional time to reach an agreement.

Saudi Arabia, the United Arab Emirates, and Qatar urged the US not to take military action. As a result of the talks, oil prices crashed, with Brent crude falling to $84 and WTI oil dropping to $80. The market is looking for a potential deal that would ease the risk to shipping traffic through the Strait of Hormuz.

The decline in oil prices could help mitigate inflation concerns and signal expectations of reduced interest rates. This supports the gold (XAU) and silver (XAG) prices, which opened slightly higher on Monday as oil prices dropped significantly.

However, both metals are trading within tight consolidation and are looking for a confirmed breakout to move in any direction. The daily chart for spot gold shows that the price has been compressing within the edges of the falling wedge pattern between the $3,950 and $4,200 areas.