Stronger expectations for further U.S. rate hikes kept gold hovering near a one-week low as investors waited for upcoming U.S. CPI data. Spot gold was $4,318.88 an ounce, while December futures fell 1.1% to $4,359.50. The European Central Bank also raised rates to counter energy-driven inflation. Silver, platinum and palladium were broadly lower.

The dollar held near its weekly highs while the yen stayed under pressure as concerns over Middle East energy supply disruptions persisted. U.S. producer prices rose 0.4% in August, in line with expectations, driven mainly by a rebound in energy prices. Brent crude futures climbed above $100 a barrel and extended gains in Asia to $108.96. Risk aversion lifted the implied probability of a Fed rate hike next week to 70%, while the U.S. 10-year yield rose to 4.965%.

Copper miners led declines on the Australian Securities Exchange on Friday as investors questioned whether the United States will move ahead with tariffs on the metal. Develop Global, Capstone Copper and Sandfire Resources posted the steepest falls, while BHP and Rio Tinto also traded lower. Copper prices have risen about 15% year to date and recently hit record highs, helped in part by strong US import demand ahead of possible tariffs.

A global selloff in bond markets has pushed government yields to multiyear highs, while escalating tensions in the Middle East lifted Brent crude to nearly $US109 a barrel and intensified inflation concerns. Investors are increasingly worried that highly valued equity markets are nearing a tipping point, and that central banks may be forced to raise rates in a way that triggers a recession. The Australian share market’s selloff has deepened amid those fears. A US Treasury debt buyback came in below expectations and did little to calm the bond-market turbulence.

Asian stocks and government bonds weakened as rising oil prices and fresh inflation data pressured risk appetite. The MSCI Asia Pacific Index fell 1.3%, with Japan and South Korea leading losses. Brent crude extended gains after climbing to almost $110 a barrel, lifting U.S. Treasury yields to multiyear highs. Faster-than-expected producer-price growth reinforced market expectations for a Federal Reserve rate increase.

The Dow fell 300 points on Thursday, taking its four-session decline to more than 1,600 points, while the S&P 500 and Nasdaq each dropped 0.6%. Brent crude rose above $107 a barrel and WTI topped $100 as markets worried about a prolonged war between the US and Iran. US Treasuries sold off broadly, with the 10-year yield rising to 4.96%, the highest since November 2023, and the 30-year yield nearing 5.4%, a level not seen since 2007.

Gold fell after the latest US producer price index (PPI) report, as inflation data and a surge in oil prices reinforced expectations that the Federal Reserve will raise rates this month. Swap traders lifted the implied odds of a hike next week to about 70% from roughly 60%, while the dollar and US yields climbed. Brent crude jumped above $105 a barrel on rising Middle East tensions. Silver slid 4% to $64.53 an ounce.

Descartes Systems reported fiscal 2025 second-quarter net income of $50 million, equal to 57 cents per share. The company posted revenue of $201.1 million for the quarter.