Oil Prices Surge as Iran Talks Stall, Gold Weakens Amid Higher Rate Hopes
Oil prices have surged again on Wednesday, driven by US-Iran peace talks stalling and US fuel markets tightening. US crude oil rose 2.2% to $91.33 a barrel while Brent November futures jumped 1% at $103.71.
Brent crude is headed for its biggest monthly gain since July. The Dow Jones Industrial Average climbed 30.02 points to 51,379.94 and the S&P 500 jumped 45.83 points, or 0.6%, to 7,716.67.
Gold prices are also affected by market expectations of higher US interest rates. Spot gold rose 0.2% to $4,188.17 an ounce while US gold futures climbed 1% to $4,219.90.
Giovanni Staunovo, analyst at UBS, said 'Higher oil prices and the increased probability of further US rate hikes being priced in by market participants are the main drivers behind gold's recent weakness.'