Oil and Gold Prices Climb as Geopolitical Tensions Rise Before US Inflation Data

Oil prices rose on Wednesday as geopolitical tensions increased ahead of key U.S. inflation data. The yen weakened against the dollar, having unwound some of its gains following rare intervention in currency markets by Japan and the United States.

The regional share benchmark rose, led by gains in South Korean stocks. U.S. crude oil prices climbed 0.61% to $83.71 a barrel, while Brent rose to $89.46 per barrel, up 0.62%. Spot gold rose 0.77% to $4,400.44 an ounce.

Traders are focused on the U.S. consumer price index data later in the session for signals of timing for a potential Federal Reserve rate hike. Market sentiment is 'lukewarm amidst lingering geopolitical risk and as market participants head into U.S. CPI data,' according to Kyle Rodda, a senior financial market analyst at Capital.com.

'The lack of substantial news or progress in talks, with Iran doubling down on its commitment to govern the Strait of Hormuz, is keeping the risk for oil prices skewed to the upside and U.S. indices on hold,' he added.