Spot gold steadied near $4,119 an ounce early Tuesday after a sharp Monday drop, while Brent crude traded around $107 a barrel as the Strait of Hormuz stayed shut to a deal. Investing.com marked spot gold little changed at $4,118.54 in early Tuesday trade, with futures near $4,150. Silver was near $60.70. That followed a slide of about 3% to $4,151 on Monday, reported by Reuters, and a further push toward $4,110, the lowest since 5 August, as yields and oil rose together. Bullion is down nearly 7% in September after trading near $4,510 earlier in the month. On 23 September it was still holding above $4,330 while Brent settled at $99.25. The round trip is the rate path, not a change in the war. See that $4,330 and $99.25 session.
Hormuz is a negotiating door, and yields are the gold price
Brent rose 4% to $108.50 on Monday, up about 20% in September and about 50% above levels before the conflict began in late February. Tuesday morning quotes had Brent up about 1.4% near $106.80 to $107.20, and WTI near $93.50 to $94.22. President Donald Trump rejected an Iranian proposal to reopen Hormuz within seven days. Indirect talks continued. Iranian Foreign Minister Abbas Araghchi met Qatari mediators in New York and said he expected a U.S. reply, CNBC reported. Kpler said Middle East crude exports this month were just under 80% of pre-conflict levels, the highest since the war began, so the physical market is less tight than the headline. The price is still reacting to the closed negotiating door. CNBC also noted U.S. retail diesel near $6.53 a gallon. A 5.22% 10-year is a direct cost for holding gold. Tim Waterer, chief market analyst at KCM Trade, said high bond yields and a high oil price were still weighing on bullion. October hike odds sat near 68% on Monday and nearer 70% by Tuesday. If Hormuz talks produce a written reopening, Brent can give back the Monday spike and gold can steady above $4,100. If they do not, the next leg is the inflation data, not the vault. See why the 10-year hit 5.22% and why bitcoin slipped toward $83,000 on the same tape.