Commodity markets traded mixed on October 1, with oil prices nearly flat and gold holding steady. Investors assessed the Fed outlook as softer inflation data reduced rate hike expectations. Brent crude rose to $98.15 a barrel, while bullion traded around $4,155 an ounce. Meanwhile, the dollar held near a two-month high.
Commodity markets traded mixed on October 1, with oil prices nearly flat in early Asian trade after rising sharply in the previous session, while gold opened the month steady as softer inflation data reduced expectations of a near-term Fed rate hike, while elevated bond yields capped gains. Oil prices were nearly flat in early Asia trade on Thursday, following the previous day's gains and steep monthly rises, as investors assessed the outcome of US-Iran peace talks and the outlook for Middle East crude exports. Brent crude futures rose 12 cents or 0.1%, to $98.15 a barrel, while US West Texas Intermediate crude was at $90.35 a barrel, down 7 cents, or 0.1%. Gold opened the month steady as softer inflation data lowered bets the Federal Reserve will raise interest rates at its next meeting, while high bond yields left the door open to renewed selling. Bullion was trading around $4,155 an ounce, after falling 0.6% the day before. The Fed's preferred measure of underlying inflation, the personal consumption expenditure price index excluding food and energy, rose a less-than-expected 0.2% in August. The prior month was also revised lower. Among other precious metals, silver was down 0.3% at $60.24 an ounce, after falling 1.7% in the previous session to an eight-week low. Platinum and palladium edged lower. The dollar held near a two-month high on Thursday, supported by an extended rise in US Treasury yields partly driven by concerns over persistent global price pressures stemming from the Middle East war. Against the dollar, the euro was marginally lower at $1.1330 in the early Asian session. It clocked a loss of nearly 2.5% in September, the largest since July 2025, pressured by Europe's debt and energy worries. Sterling was flat at $1.3264 after having slid 2.1% last month, similarly weighed down by a stronger greenback. The dollar was perched near a two-month high against a basket of currencies and last stood at 101.48, after rising 2% in September.