Support
Gold steady near record highs
French inflation slightly below expectations; EUR/USD unmoved
WTI oil prices climb as hurricane francine disrupts us gulf production
OPEC and IEA have lowered oil demand growth forecasts
Investors cautious ahead of central bank meetings next week from the Fed, Bank of England, and Bank of Japan.
As global markets kick off the day, gold holds near record highs, oil prices rise on production disruptions, and the forex market remains relatively stable.
Gold
Prices maintained their intraday gains, trading near the $2,565-$2,570 mark as the European session approached on Friday. This level represents a historic high for the yellow metal. A fresh drop in US Treasury yields pulled the US Dollar to its lowest point in over a week, further supporting gold, a non-yielding asset.
Gold also found support amid ongoing geopolitical uncertainties, particularly the conflicts in the Middle East and the Russia-Ukraine war. These risks have reinforced the metal's safe-haven appeal, validating the breakout seen overnight from a multi-week trading range. While the short-term outlook for gold remains positive, many investors are moving cautiously ahead of several key central bank meetings next week, including the Federal Reserve on Wednesday, followed by decisions from the Bank of England and the Bank of Japan on Thursday and Friday, respectively.
Elsewhere, silver prices rose near local resistance of $30. In addition to monetary policy influences, silver demand remains tied to renewable energy growth, particularly in China.
Oil
West Texas Intermediate crude oil prices have climbed for the third consecutive day, trading near $68.50 during the Asian session on Friday. The increase in prices is largely attributed to Hurricane Francine, which caused significant disruptions to oil production in the US Gulf of Mexico. Nearly 42% of oil output in the region had been halted as of Thursday, with safety assessments and damage inspections underway before operations could resume.
Analysts from UBS predict a September output drop of approximately 50,000 barrels per day (bpd), while FGE anticipates a more significant reduction of around 60,000 bpd, bringing the region’s total output to 1.69 million bpd.
In the broader market, both OPEC and the IEA have lowered their forecasts for global oil demand growth, pointing to China’s economic struggles as a key factor.
EUR/USD
The pair remained stable, trading at 1.1077 after comments from European Central Bank (ECB) Governing Council member Bostjan Vasle. He reiterated that the ECB has no predetermined path for future rate hikes, highlighting that inflation would be driven mainly by core factors and services. Despite the remarks, the currency pair was largely unchanged.
And as French inflation data for August came in slightly lower than expected, with the Harmonized Index of Consumer Prices (HICP) rising by 2.2% year-on-year, in line with forecasts. The EUR/USD pair saw little movement following the release, remaining flat.
