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July 19 (Reuters) – Investors resumed deposits into US sustainable funds last month, marking a return to the norm after net withdrawals in May broke a three-year streak of monthly inflows, researcher Morningstar said on Monday.

Sustainable mutual funds and ETFs, including those using environmental, social and governance (ESG) factors, notched a “modest” USD 528 million of net new deposits in June after shedding USD 3.2 billion the month prior, according to Morningstar’s latest figures.

“Investors may have turned back to ESG and renewable energy, thinking that the worst of the downturn was already priced in,” said Alyssa Stankiewicz, Morningstar’s associate director of sustainability research.

Investors’ ESG commitments have been tested this year by the onset of a bear market, driven by rising interest rates and concerns over a potential recession, as well as underperformance by US sustainable funds.

Indeed, the positive flows in June could not reverse a marked slowdown in momentum for sustainable funds during the first half of the year.

Sustainable funds attracted USD 9.0 billion in net new deposits during the six months ended June 30, far below the USD 39.4 billion they gathered during the same period in 2021, according to Morningstar.

Most sustainable funds are equity funds, which have also experienced inconsistent flows this year amid stock market volatility.

US equity funds gathered USD 14.8 billion in net new deposits in June, their fourth month of inflows this year, according to Morningstar.

Investors pulled USD 61 billion overall from US long-term mutual funds and ETFs last month. It was their third consecutive month of outflows, the research firm said.

(Reporting by Cole Horton; Editing by Sam Holmes)

July 19 (Reuters) – Oil rose slightly on Tuesday, paring earlier losses and after soaring by more than USD 5 barrel in the previous session, amid concerns about tight supply.

Brent crude futures for September settlement gained 17 cents to USD 106.51 a barrel by 0645 GMT. The contract rose 5.1% on Monday, the biggest percentage gain since April 12.

WTI crude futures for August delivery rose by 36 cent to USD 102.96 a barrel. The contract climbed 5.1% on Monday and the largest percentage gain since May 11.

The August WTI contract expires on Wednesday and the more actively traded September future was at USD 99.74 a barrel, up 32 cents.

Oil prices have been whipsawed between concerns about supply as Western sanctions on Russian crude and fuel supplies over the Ukraine conflict have disrupted trade flows to refiners and end-users and rising worries that central bank efforts to tame surging inflation may trigger a recession that would cut future fuel demand.

The underlying supply/demand imbalance is as tight as ever,” said Jeffrey Halley, senior market analyst at OANDA, in a note. “Oil prices may have peaked, but they certainly don’t look like they’re going materially lower from here unless we get a huge surprise from OPEC+.”

US President Joe Biden visited top oil exporter Saudi Arabia last week, hoping to strike a deal on an oil production boost to tame fuel prices.

However, officials from Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC), did not give clear assurances an output increase was secured.

Warren Patterson, head of Commodities Strategy at ING, said in a note that the market has had time to digest President Biden’s visit with a conclusion that it is unlikely that OPEC and its allies including Russia, known as OPEC+, will increase output more aggressively than planned in the short term.

Oil prices were backed by a softer US dollar on Tuesday, which stood around a one-week low level, making greenback-dominated oil slightly cheaper for buyers holding other currencies.

“A weaker USD provided support to the market, along with the broader commodities complex,” ING’s Patterson said.

The forecast of oil inventories in the US, the world’s biggest oil consumer, was that crude and distillate supplies may have risen last week while gasoline stockpiles likely fell, according to a preliminary Reuters poll.

(Reporting by Stephanie Kelly and Muyu Xu; Editing by Christian Schmollinger)

July 19 (Reuters) – Gold steadied on Tuesday, supported by a pullback in the US dollar, although prices were stuck in a tight range as investors refrained from making big bets ahead of key central bank meetings.

Spot gold held its ground at USD 1,708.35 per ounce, as of 0726 GMT. US gold futures eased 0.3% to USD 1,704.80.

The dollar was down 0.5% against its rivals, making greenback-priced bullion less expensive for buyers holding other currencies.

“Gold remains in a comatose state, unable to sustain gains above USD 1,720 and unable to rally even as the US dollar fell overnight,” OANDA senior analyst Jeffrey Halley said.

“That keeps the technical picture for gold very negative. It has an initial support at USD 1,700, but a sustained break and a couple of daily closes below USD 1,675 signal a much larger fall is in play.”

Offering some respite to gold, expectations for a 100-basis-point rate hike by the Federal Reserve at its policy meeting next week stood at about 30%, according to CME’s FedWatch Tool after reaching as high as 80% last week.

Market participants are now anticipating a 75-basis-point hike by the Fed at its July 26-27 meeting. The European Central Bank and the Bank of Japan both are meeting on Thursday, with the ECB widely expected to deliver a 25-basis-point hike.

Although gold is seen as an inflation hedge, higher interest rates raise the opportunity cost of holding bullion, which yields no interest.

Meanwhile, SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.5% to 1,009.06 tonnes on Monday, its lowest since late-January.

Elsewhere, spot silver rose 0.4% to USD 18.75 per ounce and platinum slipped 0.1% to USD 862, while palladium climbed 1.3% to USD 1,878.13.

(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu and Sherry Jacob-Phillips)

July 19 (Reuters) – Gold edged lower on Tuesday as an uptick in the US dollar and bond yields weighed on bullion’s appeal, with investors awaiting more cues on the Federal Reserve’s rate-hike path.

FUNDAMENTALS

* Spot gold was down 0.2% to USD 1,706.25 per ounce by 0103 GMT. US gold futures fell 0.3% to USD 1,705.30.

* The dollar was up 0.1% against its rivals, making greenback-priced bullion more expensive for buyers holding other currencies.

* US Treasury yields rose as upbeat economic data released last week and a quiet period from the Federal Reserve set the stage for risk taking.

* Expectations for a 100-basis-point rate hike by the Fed at its policy meeting next week stood at about 31%, according to CME’s FedWatch Tool after reaching as high as 80% last week.

* On Friday, Fed officials signalled they would likely stick with a 75-basis-point interest rate increase at their upcoming policy meeting, though a recent high inflation reading could still warrant larger increases than anticipated later in the year.

* Although gold is seen as an inflation hedge, higher interest rates and bond yields raise the opportunity cost of holding bullion, which yields no interest.

* Data showed US home builder sentiment plummeted in July to its lowest level since the early months of the coronavirus pandemic, as high inflation and the steepest borrowing costs in more than a decade brought customer traffic to a near standstill.

* SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.5% to 1,009.06 tonnes on Monday from 1,014.28 tonnes on Friday.

* Spot silver eased 0.1% to USD 18.66 per ounce, platinum slipped 0.2% to USD 860.88, and palladium climbed 0.6% to USD 1,865.83.

DATA/EVENTS (GMT)

0600 UK Claimant Count Unem Chng June

0600 UK ILO Unemployment Rate May

0900 EU HICP Final MM, YY June

1230 US Housing Starts Number June

(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu Sahu)

July 19 (Reuters) – Oil prices fell on Tuesday, taking a breather after surging more than USD 5 a barrel in the previous session as a plunging dollar supported buying interest and on expectations the US Federal Reserve’s interest rate hike may be less than thought.

Brent crude futures for September settlement fell 69 cents to USD 105.58 a barrel by 0036 GMT. The contract rose 5.1% on Monday, the biggest percentage gain since April 12.

WTI crude futures for August delivery fell 65 cents to USD 101.95 a barrel. The contract climbed 5.1% on Monday and the largest percentage gain since May 11.

The August WTI contract expires on Wednesday and the more actively traded September future was at USD 98.79 a barrel, down 63 cents.

Both benchmarks recorded weekly declines of more than 5% last week.

Oil prices have been whipsawed between concerns about supply as Western sanctions on Russian crude and fuel supplies have disrupted trade flows to refiners and end-users and rising worries that central bank efforts to tame surging inflation may trigger a recession that would cut future fuel demand.

Two US Federal Reserve officials indicated last week that the central bank would likely only raise interest rates by 75 basis points at its July 26-27 meeting.

A lower hike may mean less of a economic crunch that would reduce fuel demand.

(Reporting by Stephanie Kelly; Editing by Christian Schmollinger)