Oil Prices Dip Amid Profit-Taking Ahead of Iran Sanctions
Commodity markets traded mixed on August 24, as investors booked profits ahead of an expected US announcement on further sanctions against Iran. Oil prices declined more than $1 a barrel, with Brent crude falling $1.22, or 1.29%, to $93.17 a barrel, while West Texas Intermediate crude declined $1.20, or 1.38%, to $85.86 a barrel.
The decline in oil prices came as investors took profits ahead of the US announcement, which could further disrupt Middle East supplies. The expectation of additional sanctions weighed on oil markets, with Brent crude falling below its previous week's high.
In contrast, gold prices traded near a three-month high, supported by a weaker dollar and increased demand for alternative assets after the US Treasury's intervention in the bond market raised concerns over the currency. Bullion rose as much as 0.5% to above $4,620 an ounce, extending its third consecutive weekly gain.