Finance

Expectations for an interest rate hike at the upcoming Federal Reserve meeting surged to roughly 87% following the latest inflation metrics. Although the headline consumer price index aligned with estimates at a 3.4% annual rate, underlying core inflation pressures came in slightly hotter than anticipated, prompting market participants to position for tighter central bank policy.

Crude oil benchmarks remained highly volatile, fluctuating near multi-month highs above $100 per barrel due to structural inflation fears and supply line disruptions, including a temporary pipeline shutdown in Saudi Arabia. Meanwhile, retail energy pressures hit a historic milestone as the nationwide average price for a gallon of diesel surpassed $6 for the first time.

Precious metals experienced a turbulent week, with gold futures consolidating near their lowest levels in more than a month. Stronger economic data and escalating energy costs have elevated bond yields and reinforced the U.S. dollar, driving up the opportunity cost of holding non-yielding bullion and pacing gold for a third consecutive weekly decline.