Evening digest: Amazon faces FTC suit, gold falls as oil rises

On Monday, the FTC announced a lawsuit against Amazon, alleging it misled advertisers about pricing.

Gold prices fell as higher rate expectations and rising oil prices weighed on the metal.

Oil prices climbed after renewed US-Iran military action raised concerns about supply disruptions.

Bitcoin traded around $79,000 as bond yields approached multi-year highs and traders assessed fresh bearish signals.

Amazon faces FTC Suit

The US Federal Trade Commission sued Amazon over claims that the e-commerce company misled advertisers on prices.

22 state attorneys general also joined the lawsuit.

The FTC and several state attorneys general have been investigating Amazon's advertising practices.

The probe focuses partly on whether the company properly disclosed the terms and pricing associated with advertisements, including sponsored listings that appear prominently in Amazon search results.

The enforcement action could expose Amazon to billions of dollars in civil penalties.

Amazon disputed the allegations. The company said FTC investigators had misrepresented how its advertising auctions operate and had provided no evidence of harm to shoppers.

Amazon said its auctions prioritize products relevant to search terms before considering bids.

The company also said the inflation-adjusted average cost-per-click for its search ads remained flat between 2019 and 2024 while advertising performance improved.

The potential case would add to Amazon's legal disputes with the FTC.

In 2025, the company agreed to pay $2.5 billion to resolve a separate investigation involving its Prime subscription practices.

Gold falls on rate hike bets

Gold fell on Monday as investors increased expectations for a Federal Reserve rate hike following hawkish comments from Chair Kevin Warsh.

Spot gold declined 0.26% to $4,441.04 an ounce, after reaching its lowest level since Aug. 19.

Despite the decline, gold remained on track for its strongest monthly performance since January, with prices up 9.7% for August. US gold futures for December delivery fell 0.88% to settle at $4,489.90.

Higher interest rates, inflation expectations and stronger oil prices have weighed on gold, according to Daniel Pavilonis, senior market strategist at StoneX.

He added that stronger US yields and a firmer dollar had placed gold in a "precarious position."

Markets have raised expectations for a September rate increase to about 64%, from around 36% before Warsh's comments.

Oil rises on supply fears

Oil prices settled more than 2.5% higher on Monday as renewed military action between the US and Iran revived concerns about global supply disruptions.

Brent crude futures rose 2.53%, to $90.33 a barrel, while US West Texas Intermediate crude gained 2.85%, to $85.78.

Brent reached $91.52 during the session, its highest level since Aug. 25.

The conflict has now extended into its sixth month. Shipping data showed visible commodity vessels transiting the Strait of Hormuz fell to five a day over the weekend.

Analysts at Gelber & Associates said some Gulf oil was still moving through the strait, limiting the rally, but the latest military exchange had created a meaningful near-term supply premium.

Bitcoin faces bearish signals

Bitcoin traded around $79,000 at the start of Monday's Wall Street session as US Treasury yields approached multi-year highs.

The cryptocurrency briefly rebounded after Treasury Secretary Scott Bessent discussed the bond market in an interview with CNBC. Bessent said he had not yet purchased long-dated bonds to support the market and was "fine" with yields rebounding following the Treasury's announcement of larger debt buybacks.

The 10-year Treasury yield reached 4.76%, its highest level since January 2025, while the 30-year yield climbed to 5.269%, approaching its highest level since January 2007.

The Kobeissi Letter said the bond market appeared to be "completely ignoring the US Treasury."

Bitcoin was also facing a technical warning ahead of the August monthly close.

The cryptocurrency remained above its 50-week exponential moving average at $78,377, a level viewed as important support.

Trader and analyst Rekt Capital pointed to a potential hidden bearish divergence between Bitcoin's daily price and relative strength index. "If the Daily RSI continues to make Lower Highs (blue), that'll contribute to mounting weakness here," he said.

The daily RSI stood at 61.83 on Monday, remaining in overbought territory.