Fed Week Looms as Oil Prices Soar on Prolonged Iran Conflict

The week ahead is shaping up to be dominated by monetary policy as investors await the Federal Reserve's (Fed) decision on interest rates. The Fed meeting, scheduled for September 15-16, will likely focus on inflation, which remains above the 2% target.

Commodity markets have been volatile, with oil prices surging over 9% due to concerns about a prolonged Iran conflict. Brent crude approached $110 a barrel and WTI reached near $105 a barrel, both at their highest levels since late May.

The US Treasury's decision to conduct its first buyback of 10-20 year paper under the current administration has also contributed to dollar strength, with the greenback trading above 99. Wholesale prices rose 0.4% month-on-month in August, while annual inflation came in at 5.4%, fueling expectations for a rate hike.

Gold and silver prices slipped due to the hot PPI print but rebounded on Friday as markets digested the data. The metals' recovery was largely driven by positioning rather than fresh reassurance. Gold futures continue to consolidate above Rs 1,49,650-1,48,000 per 10 gram support zone.

The week ahead will also see announcements from the Bank of England and Bank of Japan, adding significance to global markets. China's industrial production and retail sales figures are expected in the same window.