Finance

The August Consumer Price Index showed headline inflation holding steady at an annual rate of 3.4%, matching market forecasts. However, core CPI numbers stripped of food and energy rose slightly quicker than expected at 0.3%, driving the implied odds of a Federal Reserve interest rate hike up to roughly 87%.

Escalating military friction involving the U.S., Iran, and Houthi forces in vital Middle Eastern shipping straits has injected severe supply risk into energy markets. Both Brent and West Texas Intermediate futures are on track to wrap up the trading week above the $100 per barrel threshold for the first time in nearly four months, recording a weekly gain of roughly 13%.

Precious metals experienced notable downside volatility, with spot gold dipping below the psychological $4,400 per ounce mark to multi-week lows. Stronger wholesale inflation data and higher U.S. Treasury yields have elevated the opportunity cost of holding the non-yielding asset, overpowering traditional safe-haven demand.