Canada Commodities: Gold Surges Even as Trump Hints at Strait of Hormuz Deal; Oil Mixed
Gold prices rallied while oil moved in both directions Wednesday morning as optimism grew for an US-Iran agreement to reopen the Strait of Hormuz.US President Donald Trump hinted that an agreement on the disputed Strait was "possible as early as Wednesday," Bloomberg reported early Wednesday morning.West Texas Intermediate September crude oil futures, the US benchmark, fell $0.50 to $75.27 per barrel. Brent crude oil, the international benchmark, rose $0.19 to $79.55 a barrel for October delivery.Brent prices rose after Iran-backed Houthis reportedly hit a Saudi Arabian tanker in the Red Sea, both CNBC and CNN reported.TD Economist Marc Ercalao wrote in an Aug. 4 note that "Oil prices remain hostage to geopolitics as markets continue to swing between de-escalation hopes and renewed shipping disruptions."Ercalao described oil price movements in the same note as "gyrations", making forecasts "exceptionally difficult."Comex gold for December delivery jumped 2.6%, or $108.30, to $4,261 an ounce.In agricultural commodities, September wheat futures rose 0.7% to $6.42 per bushel, while November canola futures rose 0.5% to C$764.70 per tonne.