European stock markets edged higher on Monday as commodity prices eased and investors chewed over a mix of geopolitical signals and corporate moves. Brent crude was trading in the mid‑$60s a barrel and had slipped nearly 1%, while spot gold fell about 1% after a sharp rally the previous session; London’s FTSE 100 moved into positive territory around the 9,120‑9,130 mark and other major European indices posted modest gains. Asian markets were mixed, with Shenzhen and Taiwanese shares higher and Hong Kong barely changed, while Tokyo was closed for a holiday. According to live market coverage, the cautious lift in equities came as traders pared back recent positioning in oil and bullion.

The pullback in oil partly reflected growing market hope that diplomatic engagement could reduce the risk premia attached to Russian supplies. President Donald Trump said last Friday that he planned to meet Russia’s Vladimir Putin this week in Alaska to discuss an end to the war in Ukraine, and Reuters reported traders priced that meeting as a potential easing of sanctions‑related uncertainty. Analysts told Reuters that even the prospect of progress on Ukraine could weigh on crude because it would lessen the premium investors place on geopolitical risk.

Gold’s reversal was driven by the unwinding of a short‑lived supply shock and a stronger dollar. A US Customs and Border Protection ruling had prompted concern that one‑kilogram and 100‑ounce cast bars — many of which transit through Switzerland — might be reclassified under a tariff code that carries hefty duties, triggering a spike in futures. Reuters reported that the White House subsequently moved to calm markets, saying an executive order would clarify what officials described as misinformation about import tariffs; that intervention, coupled with profit‑taking after the rally, sent prices lower. Euronews and other outlets earlier described how futures briefly hit intraday records on the tariff scare before retreating on official statements.

The tariff episode exposed how fragile bullion logistics can be. Reports said some refiners and traders paused deliveries to the US amid confusion over the reclassification, a development that analysts warn could widen premiums between New York and other trading centres and disrupt usual flows from Swiss refiners. Market commentators also pointed to a firmer dollar and rotation out of safe‑haven assets as contributing factors to the pullback in gold and to recent volatility among major gold‑miner equities.

In corporate news, Gemfields has agreed to sell the historic Fabergé luxury brand to US investment firm SMG Capital for $50m, the miner said, a deal that follows a strategic review begun late last year. Mining.com and Rapaport reported the headline price and set‑out payment terms: $45m payable on completion — expected on 28 August — with the remainder delivered through quarterly royalties. The company has framed the sale as a means to strengthen its balance sheet and provide working capital to restart and support operations at its Montepuez ruby mine in Mozambique and at Kagem in Zambia.

The disposal closes a chapter that began in December, when Gemfields put non‑core assets under review amid violent unrest at Montepuez after disputed local elections forced a temporary pause to mining operations. The firm paused the sale process at times to complete corporate actions, including a rights issue in June, and Rapaport emphasised that the Fabergé transaction marks an end to that strategic review of assets considered non‑core to Gemfields’ mining business. The buyer, SMG Capital, is controlled by technology investor Sergei Mosunov; the company’s announcement described the acquisition as a strategic fit for the buyer’s portfolio.

Looking ahead, traders said markets will remain sensitive to developments on several fronts: any substantive outcome from the planned US‑Russia talks that alters sanctions policy could ripple through energy markets, while scheduled US inflation data and negotiations over US tariffs on Chinese goods may inject further volatility. For now, a combination of geopolitical optimism, technical profit‑taking and policy clarifications appears to have taken some heat out of both oil and gold after last week’s headline‑driven moves.

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Source: Noah Wire Services