Precious Metals Price Movements

Gold prices rebounded from one-month lows as reports of a fragile ceasefire in the Middle East were said to have lifted buying interest. Higher gold and energy exports also helped push Canada’s trade balance back into a surplus for March. Silver prices attempted a recovery but remained under pressure, with analysts citing bearish momentum and the outlook for a hawkish rate environment as factors capping the metal's upside.

Geopolitical Tensions and Oil Market Impact

Geopolitical developments influenced broader market sentiment, as a fragile ceasefire reportedly improved risk appetite and caused oil prices to ease. However, tensions in the region persist, with Iran announcing a new vessel transit system for the Strait of Hormuz, and Turkey's finance minister suggesting the conflict could force a revision of its inflation target. The earlier oil price shock was noted as a source of pressure on Asian currencies.

International Trade and Inflation Pressures

Global trade dynamics remained a key focus as US industries began testifying in a hearing concerning tariffs. Separately, the European Union has urged the United States to restore previous trade deal terms. Meanwhile, rising inflationary pressures in some Asian economies are drawing attention, with a surge in the Philippines' Consumer Price Index increasing the risk of a central bank rate hike.

Central Bank Policy and Currency Markets

Central bank policy decisions impacted currency markets, with the Reserve Bank of Australia delivering a rate hike that prompted a surge in the Australian dollar. The US dollar weakened against several major currencies, including the euro and British pound, as improving risk sentiment and a pullback in US yields weighed on the greenback.