Gold Steady as Traders Weigh Hopes of US Rate Cut, Ukraine Peace

Gold prices edged higher in early Asian trade, buoyed by expectations of potential interest rate cuts from the Federal Reserve. However, these gains were partially offset by progress in ongoing peace talks between Russia and Ukraine, as noted by ANZ.

Oil prices have steadied near a month-low following indications of progress towards a peace deal in Ukraine, which could lead to the lifting of restrictions on Russian crude supplies amid a looming global oversupply. This stabilization comes after a period of volatility influenced by geopolitical developments.

Oil prices have fallen as Ukraine indicates support for a framework aimed at a peace deal with Russia. This development has contributed to a decline in oil prices, reflecting market reactions to the evolving geopolitical landscape surrounding the ongoing conflict.

US oil futures experienced a slight increase as the American Petroleum Institute (API) reported a smaller-than-expected rise in crude oil inventories, indicating a potential tightening in supply. This development reflects ongoing fluctuations in the oil market, influenced by various economic factors.

U.S. presidential envoy Steve Witkoff recently advised a senior Kremlin official on a phone call about collaborating on a plan for Ukraine, indicating a potential shift in diplomatic strategies concerning the conflict. This outreach suggests an effort to align perspectives between the U.S. and Russia regarding Ukraine's future.

Stocks advanced as U.S. Treasury yields retreated, driven by increasing expectations for a potential interest rate cut by the Federal Reserve in December. This positive sentiment in the markets reflects a recovery in technology stocks and a broader optimism among investors.

The US budget deficit reached $284 billion in October, a significant increase attributed to the recent government shutdown, which has disrupted normal fiscal operations and reporting. This deficit highlights ongoing challenges in managing the federal budget amid political uncertainties.

Oil futures have declined for the fourth time in five sessions following reports that Ukraine has agreed to a U.S.-drafted peace plan aimed at resolving the ongoing conflict with Russia, although some details remain unresolved.