Gold and Silver Prices Advance

Precious metals saw upward price movement, with gold holding near a two-week high above $4,700 and silver jumping over 2.6% to approximately $80.50. The gains were supported by a slightly weaker US Dollar as traders positioned themselves ahead of the release of key US employment data.

Mixed Reports on Middle East Tensions Drive Uncertainty

Market sentiment fluctuated on conflicting reports regarding geopolitical tensions between the United States and Iran in the Strait of Hormuz. While some reports indicated de-escalation and a potential truce which temporarily boosted risk assets and oil futures, other sources noted ongoing clashes and a wobbly ceasefire, which supported the US Dollar and weighed on Asian equity markets.

Markets Focus on US Jobs Data and Dollar Stability

The US Dollar remained steady but currency markets exhibited caution ahead of the release of the monthly Nonfarm Payrolls (NFP) report. This key employment data is being closely watched for its potential to influence the Federal Reserve's future interest rate decisions, with some analysts noting that hawkish Fed repricing has been supporting the dollar.

Japanese Yen Gains Following FX Intervention

The Japanese Yen strengthened after reports confirmed that Japanese authorities intervened in the foreign exchange market in early May to support the currency. This action caused the USD/JPY pair to lose ground, and the continued risk of further intervention kept traders on alert, stalling a recovery in the dollar against the yen.