Geopolitical Headlines Drive Market Volatility

Market sentiment fluctuated significantly based on developments in the Middle East, with initial hopes for a US-Iran peace deal causing the US Dollar to weaken broadly. This optimism faded later in the session as the deal appeared less certain, leading to a sharp rebound in the Dollar and crude oil prices. The reversal unwound earlier risk-on sentiment and prompted volatility across financial markets.

Federal Reserve Officials on Policy and Inflation

Federal Reserve officials offered cautious perspectives on monetary policy, with Cleveland Fed President Hammack suggesting a neutral stance amid economic uncertainty and voicing concern over an "inflationary mindset" taking hold. This coincided with a New York Fed survey showing households anticipate higher short-term inflation, even as San Francisco Fed President Daly advised against overreacting to achieve price stability.

Silver Prices Surge on Shifting Sentiment

Silver prices rallied to three-week highs, supported by a softer US Dollar and declining US Treasury yields during the period of geopolitical optimism. The precious metal later trimmed some of those strong gains as market sentiment shifted and headlines from the Middle East continued to stir volatility.