US Inflation Data Strengthens Dollar

Hotter-than-expected US Producer Price Index (PPI) data bolstered the US Dollar Index, pushing it to its highest level since late April. The dollar's subsequent strength weighed on other major currencies, causing the British Pound, Australian Dollar, and New Zealand Dollar to pull back from session highs.

Central Banks Weigh Geopolitical Inflation Risks

Central bankers are actively assessing the inflationary impact of a potential energy shock linked to geopolitical conflict. The European Central Bank's Chief Economist noted such a shock could require a restrictive policy, while a Federal Reserve official voiced expectations that the related price pressures would eventually subside.

Gold Gains on Geopolitical Caution

Gold prices advanced as markets turned cautious ahead of a summit between the US and Chinese presidents set to discuss trade and international security. The precious metal's price neared $4,700 in the Asian session, finding support from a more risk-averse market tone.