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Gold prices hold above $4,400 as U.S. inflation data and interest rates stay in focus. Early trading saw the U.S. dollar remain subdued, which supported dollar-denominated precious metals. A weakened dollar lowers the cost of gold for buyers using other currencies. At the same time, the benchmark U.S. 10-year Treasury yield stayed elevated near 4.84%. Since gold does not pay interest, fluctuations in bond yields significantly influence the metals market. Brent crude also stayed above $100 a barrel after crossing this level during the previous session. Investors are also keeping an eye on two important U.S. inflation reports. Producer price index data will be released at 1230 GMT on Thursday, followed by consumer inflation figures on Friday. The Federal Reserve’s upcoming meeting on September 15 and 16 continues to focus on inflation, which remains a critical factor in its interest-rate decisions. According to CME Group’s FedWatch Tool, markets are pricing in about a 60% chance of a U.S. rate hike this month. Currently, the federal funds target range is 3.50% to 3.75%. Inflation Data in Focus as Gold Clings to Above $4,400 Wednesday’s trading marked a notable shift from the initial price movement. Spot gold dipped 0.1% to $4,349.44 per ounce at 0040 GMT. By 1744 GMT, prices had risen by 1.4% to $4,414

Panama Canal transit limits tighten as drought reduces water available for ship crossings. Starting from Sept. 3, the canal offered nine daily slots for Neopanamax ships and 25 for Panamax vessels, totaling 34 slots. By Sept. 15, Panamax availability will decrease to 23 slots, reducing the overall daily capacity to 32. These adjustments are driven by diminished rainfall during Panama’s rainy season and lower inflows into the canal’s watershed. To conserve water, officials have implemented measures such as tighter booking controls and water-saving practices, while closely monitoring Gatun Lake and other water sources.

European Defense Market Gains as Volkswagen Converts Car Plant for Military Production. On Monday, Volkswagen AG announced plans to sell its Osnabrück manufacturing facility to Aurelius Capital and the federal state of Lower Saxony, transforming it into a hub for security and defense manufacturing. Israel Aurelius and the German state will produce defense-related equipment for European security markets, with a focus on air defense infrastructure. This move aligns with broader European industry trends as vehicle manufacturers explore alternative conversions to manage excess production capacity.

Egypt’s net international reserves reached a record $57.2 billion in August 2026. Compared to August 2025, the total reserves in August 2026 increased by $7.9638 billion from $49.2507 billion, representing an annual growth rate of approximately 16.2%. Egypt concluded December 2025 with net international reserves of $51.4516 billion. Consequently, reserves have grown by about $5.76 billion, or 11.2%, within the first eight months of 2026. Official monthly data reveal that the reserve totals have consistently risen each month since the beginning of the year, with positive developments extending through August.

South Korea is partnering with African nations to establish a significant framework for economic collaboration centered on artificial intelligence and technology-led progress during the 8th Korea-Africa Economic Cooperation Ministerial Conference in Seoul. This ministerial event commemorates two decades of bilateral engagement, uniting government ministers, development financiers, and tech industry leaders. Confirmed plans outline Korea and Africa working together to deploy new AI digital infrastructure across emerging trade routes while reflecting on twenty years of joint investments.

In August, South Korea’s foreign exchange reserves experienced their largest monthly jump ever, according to the Bank of Korea. By month’s end, reserves totaled $442.28 billion, marking a $14.33 billion rise from $427.95 billion at the end of July. This increase is the most significant since the reserve data series started in 1971 and also represents the highest level since May 2022.

South Korea’s consumer prices increased by 3.1% in August compared to the same month last year, according to official statistics. This figure represents a rise from 2.8% recorded in July, pushing the headline inflation rate above 3%. The consumer price index reached 120.05, with 2020 designated as the base year at 100. Additionally, prices grew by 0.2% from July.

Korea’s August exports jump 68.7% to $98.25 billion as Asia’s fourth-largest economy extends its trade expansion streak for a 15th consecutive month. The primary contributor to the country’s trade growth, semiconductor exports, soared 209% year-on-year to a record-high of $46.65 billion. The surge in chip shipments was driven by continued capital spending by major global technology companies expanding data center infrastructure and enterprise AI hardware. This achievement marks the third straight month where semiconductor exports surpassed the $40 billion mark.

India’s economy grew 7.8% in Q1 FY27 as manufacturing, services and investment expanded. According to the Ministry of Statistics and Programme Implementation, the real gross domestic product stood at ₹81.36 lakh crore for the quarter. This compares to ₹75.46 lakh crore in the same period last year. Nominal GDP reached ₹88.27 lakh crore, reflecting a 10.3% increase from ₹80 lakh crore. The real gross value added, which measures overall economic activity, grew by 8.2% to ₹73.82 lakh crore, while nominal GVA rose 11.5% to ₹80.53 lakh crore.

Japan stocks remain in focus as Nikkei volatility meets rising bond yields and rate concerns. (AI-generated image) Most of the losses in the Nikkei were regained by the session’s close, ending at 66,311.93, which was down 93.63 points, or 0.14%. This closing level was well above the morning low and marked the session high. The Topix closed at 4,156.29, up 0.23%, reversing its earlier decline. As trading progressed, market breadth improved: 131 Nikkei components advanced, 91 declined, and three remained unchanged. The rebound significantly narrowed a morning drop that had temporarily exceeded 2%. Meanwhile, Japanese bond yields increased alongside the early equity downturn. The benchmark 10-year government bond yield reached 2.95% on Monday, its highest point since 1996. The two-year yield climbed to 1.73%, marking its highest level since April 1995. Shorter-term maturities tend to closely follow expectations for monetary policy changes. As bond prices move inversely to yields, this rise in yields was accompanied by a decline in government debt prices. Market sentiment also shifted towards pricing in higher policy rates in both Japan and the United States. Bond yields hit levels not seen in three decades Technology stocks largely contributed to the initial downward pressure in equities, after U.S. semiconductor shares weakened at the end of the previous week. Due to the Nikkei’s