Energy markets advanced on Thursday, with oil prices gaining more than one per cent, while gold edged lower as the dollar remained firm. Investors positioned cautiously ahead of Federal Reserve Chair Jerome Powell’s highly anticipated address at the Jackson Hole symposium.
Oil demand outlook supports prices
Brent crude rose by around 1.2 per cent and U.S. West Texas Intermediate gained 1.3 per cent, supported by signs of resilient demand in the United States and ongoing supply discipline from major producers. Analysts pointed out that the latest weekly data on U.S. fuel consumption confirmed strong underlying demand, even as inventories stabilised. In addition, market participants highlighted that the continued restraint from OPEC+ members has helped keep supply balanced, underpinning prices despite global growth concerns.
Precious metals under pressure
Gold traded marginally lower, reflecting investor preference for the dollar as a safe-haven asset. The greenback’s stability, coupled with steady U.S. Treasury yields, limited appetite for the precious metal. Market strategists noted that while gold remains supported by longer-term demand for portfolio diversification, short-term momentum has weakened as central bank expectations dominate trading.
Broader commodity dynamics
Industrial metals displayed mixed performance. Copper prices held firm, reflecting strong demand from Asia, particularly China’s infrastructure and energy transition programmes, while aluminium slipped slightly on concerns over weaker construction demand in Europe. Agricultural commodities were little changed, with wheat and corn prices consolidating after recent volatility linked to weather risks.
Investor sentiment tied to policy
The moves in oil and gold highlighted the extent to which commodities are currently tied to expectations of central bank policy. Traders emphasised that while energy markets are being driven by tangible demand indicators, precious metals and agricultural products remain highly sensitive to shifts in the dollar and Treasury yields.
Outlook
Market observers expect volatility to increase once Powell delivers his speech. A dovish tone could weaken the dollar and bolster gold, while maintaining support for oil through demand optimism. Conversely, a more hawkish message may pressure commodities, particularly those reliant on currency-driven flows. Until then, commodities are likely to remain in tight ranges, with energy showing greater resilience than metals.
REFH – Newshub, 21 August 2025
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