Oil Holds Near Month-Low as Trump Hails Progress on Ukraine Deal

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.

Gold prices remained steady as traders assessed the potential for a U.S. interest rate cut against the backdrop of ongoing peace discussions in Ukraine. The market is closely monitoring economic indicators that could influence Federal Reserve policy decisions.

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.

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.

The ongoing trade war with the United States, coupled with bans on U.S. wine imports and a recent distributor strike in British Columbia, has prompted Canadians to increasingly support their local wine industry. Notably, sales at Cannon Estate Winery in Abbotsford have surged by 66 percent this year.

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.

Tensions between China and Japan have escalated, with Japan's new leader standing firm against China's assertive claims over Taiwan. In response, Chinese President Xi Jinping reached out to the U.S. to weaken the U.S.-Japan alliance, highlighting the geopolitical stakes involved.

Venezuelan President Nicolás Maduro may offer U.S. President Donald Trump concessions related to oil in potential talks, as both leaders navigate complex geopolitical landscapes. This comes amid ongoing discussions about U.S. sanctions and the global oil market's volatility.