TSX Futures Rise as Mideast Diplomatic Hopes Push Oil Down, Gold Up

Futures for Canada's commodity-heavy stock index advanced Tuesday morning, as rising gold prices offset a sharp decline in crude oil driven by renewed hopes for a diplomatic breakthrough in the Middle East.

By 07:33 ET (11:33 GMT), the S&P/TSX 60 index standard futures contract had gained 19 points, or 0.9%. The Toronto Stock Exchange was closed on Monday for a public holiday, after its benchmark S&P/TSX composite index finished Friday's session down 0.8% at 35,226.14.

Oil Retreats on Diplomatic Overtures

Crude oil prices reversed earlier gains after reports suggested progress in efforts to secure a peace deal between the U.S. and Iran. The potential for de-escalation eased market fears of supply disruptions through the critical Strait of Hormuz.

• Brent crude, the global benchmark, fell 1.8% to $82.23 per barrel as of 07:45 ET.
• West Texas Intermediate (WTI) crude futures dropped 2.6% to $78.24 per barrel.

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The sentiment shift followed comments from U.S. Treasury Secretary Scott Bessent to CNBC, who stated a belief that a deal could be reached imminently. Media reports also pointed to ongoing mediation by Qatar. However, the situation remains uncertain, as Iranian officials recently denied that direct talks were occurring.

Gold Gains as Inflation Fears Subside

The slide in oil prices provided a tailwind for gold by tamping down investor concerns about a potential surge in energy-driven inflation. This reduces pressure on central banks to pursue aggressive interest rate hikes, which typically weigh on non-yielding assets like bullion.

As of 08:37 ET, spot gold had risen 0.6% to $4,080.63 an ounce, while gold futures climbed 1.2% to $4,138.00 an ounce. The precious metal has recently traded in a range between roughly $4,000 and $4,100 as markets assess geopolitical developments and their impact on monetary policy.