Tensions Fuel Oil, Gold Price Surge Amid US Inflation Data Uncertainty

Geopolitical tensions continued to escalate on August 12, driving up oil and gold prices. US inflation data is set to be released later in the day, which could provide key signals for a potential Federal Reserve rate hike.

The regional share benchmark rose, led by gains in South Korean stocks, while the yen slid against the US dollar after unwinding its gains following rare intervention in currency markets by Japan and the US.

US crude rose 0.61% to $83.71 a barrel, and Brent rose to $89.46 a barrel, up 0.62% on the day. Spot gold rose 0.77% to $4,400.44 an ounce, while spot silver rose 1% to $65.30 an ounce.

Markets remain focused on US consumer price index data for signals of timing for a potential Federal Reserve rate hike. 'Market sentiment is lukewarm amid lingering geopolitical risk and as market participants head into US CPI data,' said Kyle Rodda, senior financial market analyst at Capital.com.