Precious Metals Decline Amid Dollar Strength

Gold and silver prices faced downward pressure as traders positioned for a week of significant economic events. Gold slid below $4,700 while silver also declined, with the moves largely attributed to a stronger U.S. Dollar and rising Treasury yields fueled by risk aversion related to stalled geopolitical negotiations.

Geopolitical Tensions Support Oil, Foster Market Caution

Broader market sentiment remained fragile as investors monitored developments surrounding U.S.-Iran relations and related disruptions in the Strait of Hormuz. While the tensions provided support for crude oil prices, they also contributed to cautious trading in equity futures and major currency pairs as market participants assessed the ongoing risks.

Central Bank Policy on Hold as Investors Await Guidance

Markets are heavily focused on upcoming central bank meetings, particularly from the U.S. Federal Reserve and the Bank of Japan. The Fed is widely expected to keep its policy rate unchanged amid the uncertain geopolitical landscape, while speculation regarding the future of Fed leadership also circulates. The Bank of Japan is also anticipated to hold its key rate, but traders are watching for any signals of a more hawkish policy stance moving forward.