Oil prices slipped to multi-week lows on Tuesday as investors weighed diplomatic efforts to resolve conflicts in Ukraine and Iran against the risk of further supply disruptions. Brent crude fell 1.15% to $103.56 a barrel, while West Texas Intermediate (WTI) lost 0.50% to $95.99, with both benchmarks heading toward their lowest closes since early October.
Gold also edged lower, pressured by a stronger dollar and rising Treasury yields, which offset support from easing oil prices. Spot gold declined 0.58% to $3,924.69 an ounce, while US gold futures for December delivery fell 0.89% to $3,934.20.
Oil: Peace Efforts vs. Supply Risks
Qatar has intensified mediation between the US and Iran, with both sides reportedly committed to negotiations, though a senior Iranian official indicated that a deal remains distant. The US conducted limited strikes on Iran's Qeshm Island, but officials described the operation as not signaling a return to major combat. Meanwhile, Saudi Aramco is expanding a crude pipeline that bypasses the Strait of Hormuz, according to its chief executive.
In the Ukraine conflict, Russia confirmed plans for three-way peace talks with Ukraine and the US in Abu Dhabi on November 10 and 11. However, attacks on energy infrastructure and an overnight Ukrainian drone strike on a Russian oil refinery underscored persistent supply risks.
Markets are now awaiting US inventory reports, with analysts expecting crude stocks to have risen by 900,000 barrels in the week ended October 30, which would mark the first increase in five weeks.
Gold: Dollar and Yields Weigh
The dollar's modest advance and higher Treasury yields limited gold's recovery, even as lower oil prices initially eased inflation concerns. Investors are also assessing the potential impact of the US midterm election outcome on fiscal policy and the dollar. Traders now see a 73% probability of a Federal Reserve rate hike in December, down from 76% earlier in the day.
The World Gold Council lowered its forecast for growth in gold investment demand this year to 200 metric tons from 400 tons, while raising its estimate for central bank purchases. Silver fell 1.8% to $49.74 an ounce, platinum declined 1.5% to $1,426.91, and palladium dropped 3.4% to $936.50.
Apple: Memory Costs Pressure Margins
Apple shares remained under pressure after the company reported better-than-expected quarterly earnings and revenue but issued a weaker gross margin outlook. Bank of America analyst Wamsi Mohan said rising memory costs present a near-term challenge, though Apple had anticipated some of the pressure. He noted potential offsets, including tariff-related benefits, inventory advantages, and cost reductions elsewhere in the supply chain.
Looking ahead, Mohan pointed to Apple's pricing power and large installed base as potential sources of earnings growth, arguing that higher device prices could support profitability over future upgrade cycles, particularly if memory costs eventually normalize. He also said Apple is entering longer-term agreements with memory suppliers as competition for capacity increases, and its inventory build could help reduce the risk of supply shortages.
Palantir: Strong Earnings, Slower Bookings
Palantir shares declined despite reporting its first quarterly revenue above $2 billion and raising its full-year outlook. Third-quarter revenue reached $2.313 billion, up 96% year over year and above expectations, with adjusted earnings of 44 cents per share versus estimates of 41 cents. US commercial revenue surged 148% to $984 million, exceeding US government revenue for the first time.
However, investors focused on total contract value, which rose just 6% year over year to $2.918 billion, slowing sharply from 49% growth in the second quarter. US commercial contract value increased 11%, compared with 153% growth in the previous quarter. Palantir raised its 2026 revenue guidance to approximately $8.53 billion and forecast fourth-quarter revenue of $2.649 billion to $2.653 billion, while reporting $1.22 billion in adjusted free cash flow, a 53% margin.
Despite the strong financial results, the slowdown in contract growth raised questions about the pace of future expansion.
This article is for informational purposes only and does not constitute financial advice.
