Oil Prices Rise as US-Iran Talks Stall, Inflation Risks Grow 
US Dollar Slips as Softer PPI Data Eases Fed Rate Hike Expectations 
Gold Price Holds Near $4,400 as Hormuz Risks and CPI Drive Markets 
Australia Housing Crisis Deepens as Worker Shortages Delay Homebuilding 
Australia Sets New Minimum Pay, Insurance Rules for Gig Workers 
Asian Currencies Steady as Markets Await U.S. Inflation Data 
Asian Stocks Rise as AI Chip Rally Lifts South Korea, Japan 
Singapore Raises 2026 GDP Growth Forecast to 4.5%-5.5% as AI Boom Fuels Economy 
Oil Prices Fall as U.S. Crude Inventories Surge and Hormuz Tensions Persist 
Asian Stocks Mixed as RBA Holds Rates, Oil Risks Rise 
Canada, US Hold Fresh Trade Talks as August 19 Tariff Deadline Nears 
Japan Government Backs Earlier BOJ Rate Hike as Inflation Pressures Build 
US Dollar Holds Firm as Fed Outlook and Iran Tensions Keep Markets on Edge 
Iran War Escalates as US, Houthis Target Ships Near Key Oil Routes 
Oil, Gold Rise as Geopolitical Risks Grip Markets Ahead of U.S. CPI 
Canada-US Trade Talks Gain Momentum Ahead of Aug. 19 Tariff Deadline 
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Gold prices fell Thursday as investors took profits after bullion recently climbed to a fresh two-month high. Despite the pullback, softer U.S. inflation data continued to support the precious metal by reducing expectations that the Federal Reserve will raise interest rates in September.
Spot gold dropped 1.3% to $4,352.23 per ounce, while gold futures declined 1.3% to $4,408.09 per ounce.
The latest U.S. Producer Price Index (PPI) reinforced signs that inflationary pressures may be stabilizing. July headline PPI was unchanged month over month and increased 4.7% year over year, below economists' forecasts. That compared with June's 0.1% monthly decline and 5.5% annual increase.
Core PPI, which excludes volatile components, rose 0.2% monthly and 4.2% annually. The monthly figure came in below the expected 0.3%, while the annual reading matched forecasts. Combined with July's consumer inflation data, the figures showed moderation in both headline and core inflation on an annual basis.
The softer inflation outlook influenced Federal Reserve interest rate expectations. According to the CME FedWatch tool, the probability of a September rate hike dropped to around 34%, while the likelihood of rates remaining unchanged increased to nearly 66%. Lower interest rates generally benefit non-yielding assets such as gold.
GDS Wealth Management chief investment officer Glen Smith said the weaker-than-expected PPI provided further evidence that inflation is stabilizing following an oil-driven surge linked to the Iran conflict. However, he expects the Fed to keep rates unchanged through the end of the year.
Meanwhile, oil prices retreated after six consecutive sessions of gains. Brent crude futures fell 2.3% to $86.97 per barrel as tensions surrounding the Strait of Hormuz remained elevated.
The U.S. and Iran continue to dispute control and commercial access to the crucial shipping route. Iran maintains that the strait remains under its control, while Washington insists it is open to commercial vessels. Shipping traffic has fallen sharply, while Houthi attacks around the Bab el-Mandeb Strait have added to concerns over global energy supplies and Middle East geopolitical risks.
