Quick look, Sept. 3-9: Oil stays high as gold prices unexpectedly surge

Oil prices remained elevated on Sept. 3, with both major benchmarks holding above $90 a barrel after a sharp rise the previous week. Brent crude edged up 0.01 dollar to $95.27, gaining more than 7.6% over the week. West Texas Intermediate fell 0.22% to $90.80, but remained about 8.7% higher than a week earlier.

The two benchmarks traded near five-week highs as markets worried that energy supplies from the Middle East could be disrupted. The concern followed intensified fighting between the United States and Iran. On Sept. 2, the two sides carried out their largest series of attacks since July, with Washington striking Iran’s southern coast and Tehran attacking U.S. bases across the region. The airstrikes fueled fears that the conflict could escalate again.

The U.S. dollar index rose 0.01% to 99.57 as expectations grew that the Federal Reserve could raise interest rates this month. Treasury yields, however, eased after reaching high levels. The 10-year yield fell by more than one basis point to 4.78%, after touching 4.818%, its highest level since November 2023. The 30-year yield slipped nearly one basis point to 5.259%, while the two-year yield fell by more than two basis points to 4.369%.

The retreat in yields supported precious metals. Gold rose 0.4% to above $4,406 an ounce after recovering strongly from a one-month low in the previous session. Spot silver gained 0.7% to $65.70 an ounce.

U.S. stocks also rebounded on Sept. 2. The S&P 500 rose 0.46% to 7,666.60, the Nasdaq Composite gained 0.45% to 26,217.83, and the Dow Jones Industrial Average added 295.07 points, or 0.56%, to 53,061.95. Large technology companies helped lift Wall Street, with Nvidia gaining more than 3%. Japan’s Nikkei 225, by contrast, fell 2.9%, while South Korea’s benchmark briefly dropped about 4%. Shanghai’s Composite Index lost 1% and Hong Kong’s Hang Seng edged down 0.1%.