Oil Supported by Strait of Hormuz Uncertainty as Gold Rallies on China Reserve Boost

Oil prices remain supported by ongoing uncertainty surrounding the Strait of Hormuz. The US-Iran negotiations continue to be a major factor in oil price movements, with concerns about supply disruptions and tensions in the region.

The latest data shows that money managers have reduced their net long positions in both NYMEX WTI and ICE Brent, indicating a more cautious sentiment in the market. This shift comes as US President Donald Trump said Washington is still committed to talks with Tehran to resolve outstanding issues. However, the exact outcome of these negotiations remains uncertain.

Meanwhile, gold prices have extended their rally after the People's Bank of China increased its gold reserves by 640koz (around 20 tonnes), the largest monthly addition since October 2023. This move has boosted investor confidence in gold as a safe-haven asset.