Fed official John Williams also left the door open to another rate hike later this year, putting gold on course for a nearly 6% September loss.

Brent traded near $96 as Middle East exports recovered to 98% of pre-war levels, while the US prepared to release up to 40 million barrels from reserves. Despite the pullback, crude is heading for a third consecutive monthly gain.

The US 100 gained 0.21% to 30,345, extending its four-week advance to 3.01%. 

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