Gold prices rose on Friday, extending the gains recorded in the previous session by 1.8%, and are currently trading near the key level of $4,400. The yellow metal is currently struggling to break above $4,400; if it succeeds, it could retest the next resistance level at $4,429. On the downside, if the price falls below the daily pivot point of $4,347, it could drop toward support levels near $4,305 and then $4,265.

Global markets remained sensitive to geopolitical and monetary policy developments, as oil prices fell to a one-week low while the U.S. Dollar Index held near a multi-week high. At the same time, renewed cross-border strikes between Saudi Arabia and the Houthis heightened concerns over regional stability and potential disruptions to energy supplies. Together, these developments are keeping investors focused on the outlook for oil markets, currency movements, and broader geopolitical risks.

Market Watch

Oil Prices Fall to One-Week Low

Oil prices fell by around 2% in trading on Friday, September 18, 2026, extending losses for a third consecutive session as concerns over Saudi supply disruptions eased, while markets continued to monitor developments in the Middle East.

Brent crude futures fell by around $2.14, or 2%, to approximately $102.68 per barrel, while U.S. West Texas Intermediate (WTI) crude futures declined by around $1.83, or 1.8%, to approximately $100.08 per barrel. Brent prices touched their lowest level in about a week during the session.

The decline came as expectations improved that Saudi Arabia could restore part of its export capacity after the Kingdom began increasing crude shipments through Oman. The move could help offset some of the disrupted supplies following an attack that damaged the Saudi East-West oil pipeline.

Higher inventories in the United States, Singapore, and Europe, along with increased Chinese exports of refined petroleum products, also helped ease some concerns over near-term supply shortages. However, geopolitical risks remain elevated amid continuing tensions and clashes across the Middle East.

Brent crude is therefore heading toward its first weekly decline in three weeks, after retreating from the highs recorded earlier in the week.

Dollar Index Holds Gains

The U.S. Dollar Index held on to its gains in trading on Friday, September 18, 2026, remaining close to a roughly seven-week high, as the greenback continued to receive support from expectations surrounding the Federal Reserve’s monetary policy.

The Dollar Index, which measures the performance of the U.S. currency against a basket of six major currencies, stood at around 100.26 points during Asian trading, remaining close to Thursday’s high of 100.37, its highest level in around seven weeks.

The dollar’s stability came after the Federal Reserve raised interest rates by 25 basis points on Wednesday to a range of 3.75%–4.00%, while markets continued to assess the possibility of another rate increase in the coming period.

Meanwhile, the Japanese yen remained under pressure despite the Bank of Japan raising its policy rate to 1.25%, as markets viewed the decision as offering limited signals of a rapid pace of further monetary tightening. The dollar rose to around 156.66 yen during Friday’s trading.

Investors are now focusing on upcoming comments from central bank officials and U.S. economic data for further indications about the path of interest rates, as markets reassess their monetary policy expectations following the Federal Reserve’s latest decision.

Saudi Arabia and Houthis Exchange New Cross-Border Strikes

Saudi Arabia and Iran-backed Houthi forces in Yemen exchanged new cross-border strikes on Thursday, September 17, 2026, as fighting across the region intensified, raising fresh concerns over maritime security and global energy supplies.

Houthi-affiliated media reported that Saudi airstrikes targeted areas in Yemen’s Hajjah province, near the Saudi border and the Red Sea coast, as well as areas near Taiz. The developments came amid a broader escalation in the region.

In Saudi Arabia, the Civil Defense authorities said debris from an intercepted drone fell over Taif, killing a Yemeni resident and injuring two others. It was the first fatality reported by Saudi authorities since Houthi attacks intensified over the previous week. Saudi authorities had earlier reported that more than 80 people were injured in the attacks.

In Yemen, Houthi-linked sources reported casualties from the strikes, while Yemeni military sources said 30 Houthi fighters were killed and more than 60 wounded during 24 hours of clashes and airstrikes in the Al-Waziya area west of Taiz. These casualty figures were provided by parties to the conflict and could not be independently verified.

The developments come amid continued tensions in the Red Sea and Bab el-Mandeb Strait, two major routes for global trade and energy shipments. The recent fighting has also displaced more than 100,000 people inside Yemen, according to the International Organization for Migration, while some civilians have crossed the Red Sea to Djibouti.

The escalation adds to risks facing global oil markets, as shipping activity in the region remains vulnerable to disruptions. Oil prices, however, fell during Friday’s trading as expectations improved that Saudi Arabia could restore part of its oil export capacity.

Looking Ahead

Markets are awaiting the release of U.S. Industrial Production data today, which is expected to provide fresh insights into the health of the U.S. manufacturing and industrial sectors. Investors will closely monitor the figures for signals on economic momentum and their potential implications for the Federal Reserve’s monetary policy outlook, the U.S. dollar, and broader financial markets.