Precious Metals Rise on Weaker US Dollar

Gold and silver prices gained as the US Dollar Index weakened for a third consecutive day. Gold bounced from a one-week low, while silver rose nearly 1%, supported by the softer dollar ahead of key US inflation data that has traders remaining cautious.

Oil Surges on Middle East Tensions

Crude oil prices extended their gains as geopolitical tensions escalated following reports of US strikes on Iranian tankers near a major export hub. The event has contributed to market uncertainty and pushed West Texas Intermediate prices higher, with some analysts noting a run towards the $100 per barrel mark.

Global Currencies Strengthen Against the Dollar

The US dollar weakened against other major currencies as traders weighed diverging central bank policies. The Euro found support on expectations of an interest rate hike from the European Central Bank, while the Japanese Yen strengthened amid growing speculation that the Bank of Japan could also raise its rates.

China Inflation Data Boosts Commodity Currencies

China reported a year-over-year rise in its Consumer Price Index (CPI) for August, driven partly by higher energy costs. The economic data from the key trading partner provided support to commodity-linked currencies, with both the Australian and New Zealand dollars holding gains against the US dollar following the release.