Gold prices continue to hover around the $4,400 an ounce mark, with the Chinese Central Bank buying gold for the 22nd consecutive month, increasing its reserves by 650,000 ounces in August. Futures on Wall Street resumed trading after Labor Day on a negative note, with Dow futures dropping over 300 points, while S&P 500 and Nasdaq futures fell 20 points each. Tech stocks led gains in Asia, potentially supporting tech-heavy indices.
US markets ended negatively on Friday due to a stronger-than-expected August jobs report, causing the Dow Jones to drop 270 points. Crude oil prices remain elevated, with Brent crude near $100 for the third time this year. Reports suggest Saudi Aramco’s Jazan facilities are under attack, though no independent confirmation or damage estimate exists.
Goldman Sachs warns oil prices could rise to $120 per barrel if shipping attacks in the Strait of Hormuz intensify. Hedge funds are highly bullish on Brent crude since May, with US crude (WTI) net long positions at the highest since June. The US 10-year bond yield remains near 4.8%, with Societe Generale, JPMorgan, and Barclays warning yields above 5% could trigger market reactions.
No major events are expected for the rest of the week, with Producer Price Inflation data due Thursday and Consumer Price Inflation data Friday, ahead of the Fed’s interest rate decision.
Source: CNBC TV18
