Oil Prices Rise on Middle East Supply Fears; Gold Slides Amid Rate‑Hike Speculation

Oil markets kept the momentum on Monday, with Brent futures nudging up 52 cents to $96.80 a barrel and U.S. West Texas Intermediate (WTI) gaining 66 cents to settle at $92.14. The rise may look modest, but it’s underpinned by a fresh bout of tension between the United States and Iran, especially after a series of tit‑for‑tat strikes on vessels threading the Strait of Hormuz.

Those incidents have fans of supply‑disruption scenarios breathing a little easier, because a tighter flow from the region always puts a ceiling on how low oil can go. Traders are now watching the Middle East a touch more closely, weighing the odds that any prolonged standoff could choke off a chunk of daily output.

Meanwhile, the glittering world of precious metals faced a different kind of pressure. Gold, which had slumped about 1 % the day before, lingered around $4,425 an ounce on Monday – barely moving after the dip. The restraint came as the U.S. released payroll data that beat expectations, showing a surge in job growth for August and an unchanged unemployment rate.

That stronger‑than‑expected jobs report has revived talk of an interest‑rate hike at the Federal Reserve’s upcoming September meeting. Investors, already jittery about inflation, now see the Fed possibly tightening sooner rather than later, and that outlook tends to make the dollar firmer and gold weaker.

Silver stayed largely unchanged at $66.24 an ounce, while platinum fell a touch and palladium managed a slight rise, painting a mixed picture across the broader metals spectrum.

The U.S. dollar itself was on shaky footing, wavering despite the growing bets on a rate rise. Some analysts argue that the Middle East turbulence could stir broader inflationary pressures, prompting central banks worldwide to consider tighter policy in tandem.

All in all, the commodity canvas on September 7 showed oil marching higher on geopolitical nerves, while the glitter of gold dimmed under the weight of stronger U.S. economic data and the looming prospect of higher rates.