Finance

Crude oil benchmarks jumped due to geopolitical flare-ups in the Middle East and concerns over supply infrastructure. The sudden rise in energy costs has reintroduced price-pressure anxieties across global financial markets, driving higher input costs and threatening to undo recent progress on cooling consumer prices.

The yield on the 10-year U.S. Treasury note surged toward 4.79%, reaching its highest level in months after Federal Reserve officials indicated that inflation has not slowed down meaningfully. Market participants are quickly repricing their monetary policy expectations, with odds for an interest rate hike at the September meeting jumping significantly.

Spot gold prices fell more than 1% to trade below $4,400 per ounce as rising government bond yields and a strengthening U.S. dollar dimmed the appeal of the precious metal. Because gold pays no interest, increasing expectations of a more aggressive, hawkish stance by the Federal Reserve have created a short-term barrier to bullion's momentum.