Gold partially recovered from a three-week low hit on Wednesday, but remained under pressure on prospect that the Fed could start to rein in its stimulus program as soon as next month.
Crude dropped for a fourth consecutive session on Wednesday, with U.S. oil settling over $104, after a report showed U.S. crude inventories declined.
The markets are suffering from unexpected geopolitical anxiety, said Art Cashin, director of floor operations at UBS Financial Services.
Japan's Nikkei index ended below the key 14,000 level on Wednesday as the yen hit a six-week high against the greenback on uncertainty about when the Federal Reserve could begin tapering its easy-money program.
Stocks closed near session lows Tuesday, with major averages logging their biggest declines since June, after two Federal Reserve Presidents said the central bank could begin tapering its easy-money program as early as September.
U.S. Treasurys prices ended little changed on Tuesday after the Treasury's $32 billion three-year note sale drew solid demand.
The dollar fell broadly on Tuesday, hitting a six-week low against the yen, as investors pared back bets on the U.S. currency on uncertainty about when the Federal Reserve will start reducing its bond purchases.
Gold fell 1.5 percent after encouraging U.S. economic data showing the trade gap narrowed and more indications the Federal Reserve could withdraw its monetary stimulus as early as next month.
Oil fell on Tuesday, with U.S. crude settling near $105 as Iran's new president signaled willingness to negotiate with the West over Tehran's disputed nuclear program.
European shares closed down on Tuesday after renewed fears in the U.S. that the Federal Reserve might start tapering its massive stimulus program in September.
Japan's benchmark index reversed earlier losses on Tuesday to rally 1 percent as the yen weakened while the rest of Asian stocks were mixed in choppy trade.
The dollar slid against the yen on Monday, remaining under pressure after Friday's jobs figures lowered expectations that the Federal Reserve would start reducing its bond purchases in the near term.
Gold dropped nearly 1 percent in quiet trading on Monday after signs of an improving British business sector and better U.S. manufacturing activities.
Crude pared early losses on Monday, with U.S. oil ending the session under $107 after a report showed strong growth in the U.S. economy's service sector.
Asian stocks pulled back from last week's highs on Monday following a tepid U.S. jobs report but positive Chinese economic data over the weekend capped larger losses.
Gold rose on Friday following a sharp rebound from earlier lows, after mixed signals from the U.S. nonfarm payrolls report suggested that the Federal Reserve could be more cautious about drawing down its economic stimulus program.
U.S. oil settled a hair under $107, as U.S. jobs data fell short of expectations and tempered budding optimism underpinning demand expectations in the world's largest economy.
The dollar tumbled against the euro and the yen on Friday after mixed signals about the US labor market.
Asian stocks rallied on Friday, extending the previous day's strong gains as investors cheered robust global economic data and a commitment to easy monetary policy from global central banks.
Stocks soared to set fresh closing highs on the first day of August, propelling the S&P 500 above the 1,700 mark for the first time, as Wall Street cheered a round of upbeat economic data.
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