Overview:
Commodity markets rallied Wednesday and Thursday as investors reassessed Federal Reserve interest rate expectations. Gold approached four-month highs near USD 4,493 per ounce, while oil prices retreated below USD 88 per barrel on weakened global demand forecasts. Regional stock indices showed mixed momentum, with South Korea's Kospi Index transitioning to bull market territory supported by artificial intelligence sector gains, while Japanese equities posted record highs. UAE corporate earnings accelerated, with utilities and industrial firms delivering strong half-year results.
Details:
Gold futures posted their highest levels in more than two months Thursday, with December contracts climbing 0.6 percent to USD 4,493 per ounce. The advance followed revised expectations of lower Federal Reserve interest rate increases in the coming months, a dynamic that typically supports non-interest-bearing precious metals. Oil prices declined more than USD 1 per barrel Thursday after analysts lowered 2026 global demand forecasts, citing geopolitical disruptions. Benchmark crude fell below USD 88 per barrel as the International Energy Agency projected global crude supply will decline by 4.3 million barrels daily, or approximately 5 percent, in 2026.
Electric vehicle markets demonstrated resilience, with global sales reaching 1.85 million units in July according to consulting firm Benchmark Mineral Intelligence, extending five consecutive months of demand growth despite broader economic uncertainties.
In regional corporate earnings, Dubai Electricity and Water Authority reported half-year net profit of AED 3.33 billion, a 15 percent increase, with revenues reaching AED 14.86 billion. Sharjah Cement and Industrial Development achieved net profit of AED 77.4 million, up 104 percent year-over-year. Abu Dhabi Shipbuilding posted a 43.4 percent profit increase to AED 53.2 million. These results reflected robust operational performance across utilities, materials, and industrial manufacturing sectors.
Outlook:
Investors are monitoring Federal Reserve inflation data releases scheduled for early September to refine interest rate expectations. A sustained decline in real rates could continue supporting gold and other defensive assets while potentially limiting crude oil recovery.
Regional equity markets remain sensitive to artificial intelligence sector momentum globally, with technology-heavy indices in developed Asian markets establishing new records. UAE real estate and banking stocks demonstrated resilience Wednesday, positioning these cyclical sectors as key performance drivers for the remainder of the third quarter.