US Dollar Weakens on Geopolitical Optimism

A broad risk-on mood swept through markets on reports of progress toward a US-Iran ceasefire agreement, putting significant pressure on the US Dollar. The greenback fell to two-week lows as it weakened against major currencies like the Euro and British Pound, although a separate report noted that progress toward a final deal had slowed due to ongoing disagreements.

Gold Rallies Amid Dollar Weakness

Gold prices rose over 1.3% as the precious metal benefited from a weaker US Dollar and the general shift in market sentiment. The metal rebounded sharply during Monday's session, with analysts noting that it held above the key technical support level of $4,500 per ounce.

Oil Prices Decline on Supply Hopes

Crude oil prices fell sharply, with WTI dropping to two-week lows and testing the psychological $90 per barrel level. The decline was attributed to hopes that a potential US-Iran accord could lead to the reopening of the Strait of Hormuz and an eventual increase in global oil supply.

Asian Economic Indicators Point to Resilience

Economic reports from Asia indicated areas of strength, with analysts raising Singapore's 2026 GDP forecast due to sustained demand related to artificial intelligence and robust electronics indicators. Separately, a report highlighted that Asia's small-cap stocks have been strong performers over the past five years, outperforming regional large caps.