Geopolitical Tensions Send Oil, Gold Prices Soaring
Tensions in the Middle East and Asia are driving up prices of oil and gold, while regional shares edge higher ahead of US inflation data. U.S. crude rose 0.89% to $83.94 a barrel, and Brent advanced to $89.60 per barrel, both benchmarks settling more than $1 higher on Tuesday.
Spot gold gained 0.46% to $4,387.03 an ounce. The uptick in oil prices is attributed to geopolitical risk, with the Iran war showing no signs of ending despite repeated claims from US President Donald Trump of an imminent deal.
The upcoming Consumer Price Index (CPI) data will not capture the most recent rise in energy costs but could still influence expectations for a potential Federal Reserve rate hike. Markets are focused on the CPI report, with some predicting a rally in Treasuries if the print comes in at zero.