Web Trader MT5 
Oil prices rose on Monday as US-Iran tensions escalated, increasing fears of further disruptions to crude supplies and shipping through the Strait of Hormuz. Tensions between the US and Iran escalated further over the weekend, with President Trump threatening to target Kharg Island, Iran’s main oil export terminal. US forces also struck two Iranian rocket launchers on Larak Island. Brent crude gained 2.5% to $90.66 per barrel, while WTI rose 2.6% to $85.70.
In Asia, China’s manufacturing sector contracted for a second consecutive month in August, with the official PMI rising to 49.8 from 49.2 in July, slightly better than the 49.6 expected. However, the reading below 50 still signals contraction, reflecting weak domestic demand and continued pressure from the property sector.
Meanwhile, the Japanese yen weakened against the dollar as USDJPY briefly rose above 160.00, giving back much of its gains following recent US-Japan intervention.
In the US, stock futures fell in early trading today as the US-Iran conflict escalated. Dow futures fell 0.3%, S&P 500 futures 0.4%, and Nasdaq-100 futures 0.4%, while Asian markets also traded lower. These declines also follow last Friday’s Jackson Hole speech by Fed Chair Kevin Warsh where he struck a hawkish tone, suggesting that underlying inflation may not have improved significantly. As a result, markets increased the probability of a September rate hike to 59%, up from 40% a week earlier, supporting the US dollar and weighing on gold prices.
Gold extended its correction today, falling below $4,400. The decline was driven mainly by renewed expectations of a September Fed rate hike and escalating US-Iran tensions, which pushed oil prices and inflation concerns higher.
Investors now will focus on the US Nonfarm Payrolls due later this week, the jobs report will be crucial in determining whether gold continues its correction or stages a recovery from the $4,400 area.
Tags
Open Live Account
Email Address
Phone Number
Important Notice
STARTRADER does not accept any applications from Australian residents.
To comply with regulatory requirements, clicking the button will redirect you to the STARTRADER website operated by STARTRADER PRIME GLOBAL PTY LTD (ABN 65 156 005 668), an authorized Australian Financial Services Licence holder (AFSL no. 421210) regulated by the Australian Securities and Investments Commission.
Important Notice for Residents of the United Arab Emirates
In alignment with local regulatory requirements, individuals residing in the United Arab Emirates are requested to proceed via our dedicated regional platform at startrader.ae, which is operated by STARTRADER Global Financial Consultation & Financial Analysis L.L.C.. This entity is licensed by the UAE Capital Market Authority (CMA) under License No. 20200000241, and is authorised to introduce financial services and promote financial products in the UAE.
Please click the "Continue" button below to be redirected.
