Precious Metals Decline on Fed Outlook and Import Curbs

Gold prices fell as expectations for higher U.S. interest rates grew, driven by inflation concerns linked to Middle East tensions. Silver also faced downward pressure, not only from the hawkish Federal Reserve outlook but also from reports that India has immediately restricted most silver imports to support its currency.

Stronger US Dollar Weighs on Major Currencies

The U.S. Dollar strengthened broadly against other major currencies as markets priced in a more aggressive monetary policy stance from the Federal Reserve amid rising inflation fears. The move was reflected in weakness for the Japanese Yen, British Pound, and Euro, with a general reduction in risk appetite noted across financial markets.

Geopolitical Tensions Boost Oil Prices

West Texas Intermediate (WTI) crude oil prices climbed to a two-week high amid escalating geopolitical tensions in the Middle East. Reports of drone incidents in the UAE and Saudi Arabia, combined with the ongoing US-Iran conflict, fueled fears of potential energy supply disruptions.

Weak Chinese Data Hits Commodity Currencies

Economic data from China for April sharply missed forecasts, with both industrial production and retail sales showing a significant slowdown in growth. The disappointing figures created headwinds for the currencies of key trading partners, causing the Australian and New Zealand dollars to decline.