PPI Exceeds Expectations, Boosting September Rate Hike Bets as Oil Prices Top $100

The latest PPI data exceeded market expectations, increasing the likelihood of a Federal Reserve rate hike in September. Gold prices experienced significant volatility, dropping $120 from the daily high. Meanwhile, geopolitical tensions in the Red Sea, following the capture of key coastal cities by Houthi rebels, have driven up shipping risk premiums. Concerns over supply disruptions and escalating conflict pushed both WTI and Brent crude oil prices above $100 per barrel.