Today’s Commodities News: Rising Geopolitical Risks Lift Oil and Gold as Markets Focus on US CPI

Overview

On August 12, global markets continued to be influenced by Middle East geopolitical risks and upcoming US inflation data. Oil prices extended their gains, gold remained strong, and the US dollar edged higher as investors awaited the US July CPI report, which could provide further clues about the Federal Reserve's future policy direction.

🛢 Oil: Geopolitical Risks Continue to Support Prices

Uncertainty surrounding the Middle East, shipping security risks, and the Strait of Hormuz continues to support oil prices.

Market transmission:

Geopolitics → Shipping Risks → Energy Supply → Oil Prices🟡 Gold: Safe-Haven Demand and CPI in Focus

Gold continues to benefit from safe-haven demand as investors await the US July CPI data.

The market will closely watch how the US dollar and Treasury yields react after the data release, as well as whether gold can maintain its current strength.

💵 US Dollar: CPI May Determine the Next Move

The US dollar edged higher during the Asian trading session, but markets remain cautious.

The US July CPI report could significantly influence expectations for future interest rates, potentially affecting the US dollar, Treasury yields, and gold.

Today's Market Focus

MarketKey Drivers🟡 GoldSafe-haven demand + US CPI🛢 OilMiddle East tensions + Shipping risks💵 US DollarPost-CPI interest-rate expectations🇺🇸 US TreasuriesInflation + Federal Reserve policy repricing

Market Summary

Today's core market theme can be summarized as:

Geopolitical risks are supporting gold and oil, while US CPI could determine the next stage of pricing for the US dollar, Treasury yields, and the broader market.

After the CPI release, investors will closely watch:

CPI → Treasury Yields → US Dollar → Gold

and:

Geopolitics → Energy Supply → Oil → Inflation Expectations