Oil Pulls Back from Highs as the Dollar Weakens

On Tuesday, October 20, crude oil climbed to a five-month high on reports of attacks targeting shipping and energy facilities in the Middle East. Prices then gave back those gains later in the session as regional leaders initiated mediation talks. In official closing prices, global benchmark Brent settled at $108.79 a barrel after touching $111.99, while West Texas Intermediate settled at $101.79.

Gold followed energy moves with a decline of its own. Gold eased on the session because higher energy costs renewed expectations that interest rates will stay higher for longer. In regular trading, spot bullion slipped to about $4,120.87 an ounce. Round-the-clock trading extended that decline after regular markets closed. By 10:25 am New York, extended trading showed gold -1.6%.

Currencies reflected shifting bond yields and local economic developments. The U.S. dollar weakened as longer-term Treasury yields fell, with the dollar index slipping to around 101.71. In contrast, the British pound strengthened against the dollar following steady domestic employment data that bolstered rate expectations, rising to around $1.3380. Extended trading carried that momentum further, with the pound against the dollar +0.7% recorded by 10:25 am New York.

The Japanese yen strengthened against the dollar following solid investor demand at a government bond auction, trading near ¥158.17 per dollar. Meanwhile, the euro held steady against the dollar as protests in France diminished.

In digital assets, the session closed with Bitcoin -0.4% alongside Ethereum -0.5%.

Looking ahead, the main scheduled event for currency and commodity markets is the Federal Reserve's policy meeting scheduled for October 27 and 28, 2026. Market participants are awaiting that meeting for direction on the path of central bank interest rates.