NEW YORK: Oil prices held near recent highs on Wednesday while gold traded little changed, keeping both commodities in focus as energy markets continued to absorb supply disruption in the Gulf and bullion investors awaited the latest signal from the Federal Reserve. Crude eased only slightly after a seven-session run of gains, while gold steadied after the previous session’s decline, leaving both markets near levels that have defined trading this week across global commodity markets.
Brent crude for June slipped 1 cent to $111.25 a barrel by 0413 GMT, while the more actively traded July contract fell 28 cents to $104.12. In precious metals, spot gold was up 0.2% at $4,602.82 an ounce at 0439 GMT, and U.S. gold futures for June delivery rose 0.2% to $4,616.40. The moves reflected a market that remained sensitive to both physical supply conditions in oil and interest-rate expectations in gold.
Oil remained supported by continued disruption around the Strait of Hormuz, a key shipping route for global crude and liquefied natural gas flows. The market was also assessing the United Arab Emirates’ decision to leave OPEC and OPEC+ on May 1, a policy shift that changed the producer-group backdrop without immediately easing supply concerns. Export constraints through the Gulf kept near-term attention on physical availability rather than on headline changes to producer alignment.
Oil supply disruptions keep crude elevated
The United Arab Emirates’ departure added fresh scrutiny to OPEC’s influence over supply at a time when regional shipping routes remain under pressure. The International Energy Agency said OPEC+ accounted for 44% of global oil production in March, down from about 48% in February, underscoring a shift in the group’s market share even as supply disruption remained the dominant factor in price formation. For traders, the immediate effect stayed centered on tight flows rather than any broader policy recalibration.
Gold held steady as investors balanced geopolitical risk and higher oil prices against expectations that the Federal Reserve would leave interest rates unchanged at the end of its two-day meeting later on Wednesday. Elevated energy prices can reinforce inflation pressures, while expectations for higher borrowing costs tend to limit gains in non-yielding assets such as gold. That left bullion trading in a relatively narrow range even as oil remained above the $110 a barrel level.
Fed decision anchors bullion trade
The Federal Reserve remained the key near-term focus for gold markets, with investors watching Chair Jerome Powell’s comments for guidance on inflation and monetary policy. Other central bank decisions due this week, including those from the European Central Bank, the Bank of England and the Bank of Canada, also kept broader market attention on the global rate outlook. In other precious metals, spot silver rose 1% to $73.82 an ounce, platinum fell 0.3% to $1,933.75, and palladium slipped 0.2% to $1,457.39.
Taken together, the moves left commodity markets defined by two clear reference points: supply stress in oil and policy caution in gold. Brent remained above $110 a barrel despite Wednesday’s slight decline, while gold held near $4,600 an ounce as traders kept OPEC developments, the United Arab Emirates’ exit, and the Federal Reserve’s policy signal at the center of the session. The result was a market tone shaped by firm energy prices and steady precious metals trading. – By Content Syndication Services.