Finance

The August Consumer Price Index showed headline inflation steadying at a 3.4% annual rate, but core inflation came in slightly warmer than projected at a 0.3% monthly pace. This underlying price persistence caused market participants to rapidly recalibrate their expectations, driving the implied odds of a Federal Reserve interest rate hike at next week's policy meeting to approximately 87%.

Crude oil futures experienced heavy volatility, with Brent crude briefly pushing near $110 a barrel before cooling down by roughly 3% late in the week. Escalating geopolitical tensions in the Gulf region, including shipping route conflicts involving the U.S. and Iran, continue to inject a severe risk premium into energy markets and drive record-high domestic fuel prices.

Precious metals remained under notable pressure, with spot gold breaking below the psychological $4,400 per troy ounce threshold to mark its third consecutive weekly decline. The combination of surging U.S. Treasury yields, a strengthening dollar, and anticipation of tighter central bank policy significantly increased the opportunity cost of holding the non-yielding safe haven asset.