MARKET UPDATE

Oil climbs as U.S.-Saudi strikes revive supply fears.

Oil prices rebounded on Wednesday after the United States and Saudi Arabia launched joint strikes against Iran-backed groups in Iraq, while the interception of a fresh barrage of Iranian ballistic missiles targeting U.S. forces revived concerns over escalating tensions in the Middle East.

Prices also found support after an industry report showed a sharp draw in U.S. crude inventories, while expectations that OPEC+ could pause planned output increases from October added to the positive sentiment.

As of 01:54 ET (05:54 GMT), Brent Oil Futures rose 3.6% to $87.08 a barrel, while Crude Oil WTI Futures gained 3.4% to $81.99 a barrel, recovering after both benchmarks had retreated roughly 15% over the previous three sessions.

Middle East risks remain firmly in focus

The latest gains came after the United States and Saudi Arabia carried out strikes against Iran-backed groups in Iraq, blaming them for recent drone attacks on Saudi oil facilities. Tehran rejected the accusations, warning that linking Iran to the attacks represented a “major miscalculation.”

 

Bitcoin rises to $64k ahead of Fed decision.

Bitcoin edged higher on Wednesday, hovering near $64,000 levels as investors refrained from making large bets ahead of the U.S. Federal Reserve’s policy decision, while the cryptocurrency showed resilience despite renewed selling in AI-linked technology stocks.

The world’s largest cryptocurrency last traded 1% higher at $64,075.5 by 01:56 ET (05:56 GMT).

Bitcoin slid below $63,000 in the previous session, tracking an AI-led global stock rout.

Fed decision on tap; modest chances of a hike linger

The Federal Reserve’s policy decision later on Wednesday remained the key focus for investors, with uncertainty over the outcome keeping trading subdued.

A hawkish-than-expected outcome could weigh on cryptocurrencies and other risk-sensitive assets, while a dovish signal could bolster demand for digital assets.

 

Gold prices steady ahead of Fed decision.

Gold prices were little changed in Asian trading on Wednesday, as investors refrained from making large bets ahead of the U.S. Federal Reserve’s policy decision later in the day, while a rebound in oil prices following renewed U.S.-Iran hostilities rekindled inflation worries.

Spot gold edged down 0.1% to $4,025.38 an ounce by 23:32 ET (03:32 GMT), while U.S. Gold futures fell 0.4% to $4,023.10.

The yellow metal slipped more than 1% in the previous session as a stronger U.S. dollar weighed.

The US Dollar Index ticked 0.1% lower on Wednesday but remained near a one-month high, making gold more expensive for overseas buyers.

The Federal Reserve is widely expected to leave interest rates unchanged at the conclusion of its two-day meeting later on Wednesday.

According to CME Group’s FedWatch Tool, traders see the central bank keeping rates on hold, with markets instead focusing on Fed Chair Kevin Warsh’s comments for clues on the timing of any future policy easing.

Higher-for-longer interest rates typically weigh on gold by increasing the opportunity cost of holding the non-yielding asset.

 

 

 

 

 

 

 

 

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