Oil Prices Plunge on Potential US-Iran Deal

Crude oil prices fell sharply, with West Texas Intermediate (WTI) hitting a 15-week low, following reports of a potential U.S.-Iran deal that would allow Tehran to immediately resume oil sales. The proposed agreement would also reportedly waive sanctions on banking and transport to facilitate the transactions. While this development points to easing inflationary pressures, one European Central Bank official cautioned that the deal might not lead to a rapid decline in inflation.

Gold Rises as Fed Hike Expectations Soften

Gold prices advanced as the plunge in oil prices prompted traders to scale back expectations for future Federal Reserve rate hikes later in the year. The prospect of lower energy costs eased inflation concerns, which in turn supported the non-yielding precious metal. Easing geopolitical tensions also appeared to weigh on demand for the safe-haven U.S. Dollar.

Silver and Currency Markets Cautious Ahead of Fed

Silver prices traded in a narrow range around the $70 mark as market participants awaited the Federal Reserve's monetary policy announcement before making significant directional moves. This cautious sentiment was also evident in currency markets, which saw limited activity ahead of the key central bank decision. Traders appear hesitant to take large positions amid uncertainty over the Fed's next steps.