Oil Steady, Gold Near Two-Month High Amid US-Iran War Uncertainty
Commodity markets rallied on August 20 as investors assessed the risks of US-Iran war and shipping disruptions through the Strait of Hormuz. Oil prices remained steady, with Brent crude futures for October delivery rising 0.3% to $91.87 a barrel.
The more active October WTI contract gained 0.2% to $84.53, while September WTI slipped 0.02% to $85.81. Both Brent and WTI settled at their highest levels since July 24 in the previous session, marking a fourth straight day of gains.
Spot gold hovered near a more than two-month high, supported by lower US Treasury yields and a weaker dollar after the US Treasury announced increased liquidity support through bond buybacks. Spot gold was little changed at $4,512.19 an ounce, after touching $4,525.79, its highest level since June 2.
The US dollar nursed steep losses on Thursday, hovering near three-month lows as investors digested measures announced by the US Treasury Department to help calm the bond market that had seen long-end yields hit their highest since 2007.