Geopolitical Tensions Boost Oil and Risk Aversion

Heightened geopolitical tensions in the Middle East, centering on stalled talks with Iran and potential prolonged closures of the Strait of Hormuz, have fueled market uncertainty. This has driven a notable surge in crude oil prices, with WTI extending gains on fears of a supply shock, and prompted a broader risk-off sentiment in equity markets.

US Dollar Strengthens on Safe-Haven Flows

The US Dollar saw increased demand as a safe-haven asset, strengthening against currencies like the New Zealand Dollar amid rising geopolitical risks. Traders are also positioning themselves ahead of the upcoming Federal Reserve interest rate decision, which is contributing to volatility in currency pairs like the EUR/USD and USD/JPY.

Silver Prices Face Headwinds from Rate Outlook

Silver prices traded with a downside bias, with bearish momentum building as the metal struggled to gain traction. A higher-for-longer interest rate outlook continues to create headwinds for non-yielding precious metals, weighing on price action.