Precious Metals Weighed Down by Strong Dollar and Higher Yields

Gold slid to its lowest levels since late March, and silver also retreated significantly as a firm US Dollar and soaring Treasury yields weighed on the precious metals sector. The US 30-year Treasury yield climbed to its highest level since 2007, increasing the opportunity cost of holding non-yielding assets like gold and silver.

Broad US Dollar Strength on Geopolitical Risk and Economic Data

The US Dollar Index strengthened as geopolitical headlines from the Middle East, resilient US economic data, and rising bond yields drove safe-haven demand. A strong private-sector employment report further bolstered the greenback, which gained against a range of currencies including the Australian Dollar, British Pound, and Canadian Dollar.

Oil Market Volatility Driven by Middle East Tensions

Oil markets experienced volatility amid heightened geopolitical tensions centered on the US-Iran conflict, with supply risks in the Persian Gulf and discussions of a potential NATO intervention supporting prices. Analysts also noted that factors such as a US waiver on Russian oil sales and potential OPEC fragmentation could influence the market moving forward.

Platinum Group Metals Face Continued Supply Deficits

Platinum group metals continue to be characterized by supply shortages, according to market analysis. The palladium market is expected to face its fifth consecutive annual supply deficit, while the platinum market also remains structurally undersupplied despite some recent data pointing to softening demand and a quarterly surplus.