August 18, 2026 - Dow Falls 0.51% to 53,459.78, Gold Falls 0.51% to $4,394.44 and Brent Rises 0.62% to $87.41

Global Markets

(A) Precious Metals

Gold: $4,394.44/oz (-0.51%)

Gold fell 0.51% as higher U.S. Treasury yields reduced demand for non-yielding bullion. Rising oil prices also raised inflation concerns, while markets awaited further Federal Reserve policy signals.

Silver: $65.22/oz (-0.84%)

Silver declined 0.84%, pressured by higher Treasury yields and broader weakness across precious metals. Concerns that stronger energy prices could keep interest rates elevated also weighed on sentiment.

(B) Energy

Brent Crude: $87.41/bbl (+0.62%)

Brent rose 0.62% as fading hopes for a U.S.-Iran agreement increased concerns over Middle East supply disruptions. The expiry of the temporary ceasefire and continued risks around the Strait of Hormuz supported oil prices.

(C) FX

USD/JPY: 159.72 (+0.40%)

USD/JPY rose 0.40% as the yen weakened, pressured by higher global bond yields and renewed Middle East uncertainty, despite expectations of possible Bank of Japan tightening.

EUR/USD: 1.1571 (-0.12%)

EUR/USD fell 0.12% as the dollar regained some safe-haven support amid U.S.-Iran tensions. Gains in the dollar were limited as September Fed hike expectations dropped to around 35%.

AUD/USD: 0.7100 (-0.01%)

AUD/USD was nearly flat, slipping 0.01%, as weaker Fed rate-hike expectations supported the Australian dollar, while geopolitical risks and higher yields capped gains.

High-Impact Economic Events

Note: These high-impact economic events are for informational purposes only. Please conduct your own research before making any market decisions.

Volatility

The VIX remained low near 15.19, reflecting modest market caution as U.S. equities weakened and renewed U.S.-Iran tensions supported higher oil prices.

What Traders Are Watching

1. U.S.-Iran Ceasefire and Strait of Hormuz - The temporary U.S.-Iran ceasefire has expired without a new agreement, while Iran has indicated a shift toward a more offensive military posture. Markets remain focused on whether tensions escalate further and how continued restrictions through the Strait of Hormuz affect global energy supplies.

1. Federal Reserve Rate Outlook - Recent U.S. job losses, softer inflation and weaker retail sales have reduced expectations for another rate increase. Markets currently assign around a 35% probability to a September hike, while most economists surveyed expect rates to remain unchanged through year-end. Attention is now turning to the Federal Reserve’s July meeting minutes due Wednesday.

1. Rising Oil Prices and Bond Yields - Brent crude has moved above $91 while long-term government bond yields continue to rise. The U.S. 30-year Treasury yield reached its highest level in almost two decades, increasing concerns that sustained energy prices could revive inflation pressures and complicate the global interest-rate outlook.