Finance

The latest report from the Labor Department revealed that the annual headline inflation rate held steady at 3.4% for August. However, a slightly stronger-than-expected core figure reinforced the narrative that inflation pressures remain sticky. Following the data release, market participants sharply ramped up expectations for a 25-basis-point interest rate increase at the upcoming Federal Reserve policy meeting.

Energy markets saw volatile trading as Brent crude prices eased slightly by nearly 3% toward the end of the week. Nevertheless, supply disruptions connected to a key Saudi Arabian pipeline and ongoing military tensions involving the U.S. and Iran have kept crude prices elevated. Both international and domestic benchmarks are on track to close out the week above $100 a barrel.

Gold futures registered downward pressure, touching their lowest trading levels in more than a month. The combination of elevated Treasury yields, a robust U.S. dollar, and mounting expectations for higher interest rates has significantly heightened the opportunity cost of holding non-yielding assets. The metal is subsequently on pace for its third consecutive weekly decline.