Oil prices edge lower as gold posts modest weekly gain amid global market volatility
Brent and WTI declined by less than 1% between September 11 and 18, while gold rose 0.16% as geopolitical tensions and US interest-rate policy shaped trading.
Oil prices ended the week slightly lower, with Brent down 0.71% and WTI down 0.52% between September 11 and 18. Gold rose 0.16%, supported in part by easing inflation concerns linked to lower oil prices, while a stronger dollar and higher US interest rates limited its gains. Geopolitical tensions and concerns about possible oil-supply disruptions contributed to market volatility.
Global oil and gold markets experienced significant volatility during the week ending September 18, as geopolitical developments in the Middle East, concerns about disruptions to oil supplies, easing inflation worries and US Federal Reserve policy influenced prices.
Brent crude fell from $104.61 a barrel on September 11 to $103.87 on September 18, according to data cited from Investing.com. The decline of $0.74 represented a 0.71% decrease. Brent traded as high as $109.97 and as low as $101.53 during the period.
West Texas Intermediate crude also ended the week lower, falling from $100.05 a barrel to $99.53. The $0.52 decline amounted to 0.52%. WTI reached a high of $106.75 and a low of $95.71 during the week.
Reuters reported that the market was assessing the impact of attacks involving Saudi Arabia and Yemen’s Houthis, along with reports that additional Saudi oil cargoes could enter global markets. Concerns about a wider disruption to supplies were partly offset by reports of increased crude flows through additional maritime loadings via Oman and efforts to restore operations on the East-West pipeline.
Gold futures rose from $4,408.90 on September 11 to $4,415.90 on September 18, an increase of $7, or 0.16%. The metal reached a high of $4,444.90 and a low of $4,273 during the period.
Reuters said gold reached a one-week high on Friday and was on course for its first weekly increase in four weeks. Lower oil prices helped ease concerns about persistent inflationary pressure, providing support for gold. However, the stronger US dollar limited its gains; the dollar index reached its highest level in more than seven weeks, making gold more expensive for holders of other currencies.
The Federal Reserve raised its interest-rate range by 0.25 percentage points on Wednesday, to 3.75%–4%, and indicated that further increases could be possible in the coming months. Higher interest rates generally reduce gold’s appeal relative to interest-bearing assets, although lower oil prices remained a source of support for the metal.