Precious Metals Pressured by US Dollar Strength

Gold prices edged lower as the US Dollar gained ground on hawkish comments from a Federal Reserve official and fading optimism for a US-Iran deal. Silver prices remained range-bound with weak momentum, as traders showed caution amid the geopolitical uncertainty. The dollar's strength was a key factor weighing on the precious metals complex.

Markets Digest New Federal Reserve Leadership

Kevin Warsh was sworn in as the new Chairman of the Federal Reserve, with President Trump stating he wants the chair to be independent. Warsh signaled his intent to lead reform at the central bank, and markets are assessing the implications of the new, reportedly hawkish, leadership. Despite the change, the Dow Jones Industrial Average posted a new record high.

Divergent Trends Across Global Currency Markets

The US Dollar saw broad strength, gaining against the Euro and contributing to weakness in the Japanese Yen. Elsewhere, the South Korean Won found support from a hawkish tilt at its central bank, while the Australian Dollar weakened as markets repriced rate hike expectations. The Chinese Yuan and Singapore Dollar were reported to be trading within established ranges.

US Trade and Technology Policy in Focus

The United States is preparing for upcoming USMCA negotiations, which are expected to focus on content rules and economic security. A US trade official stated that while protecting the domestic chip industry is important, no immediate tariffs are planned for the sector. Separately, the US and Sweden signed a technology and defense cooperation agreement covering areas like AI.