Hawkish Fed Commentary Weighs on Markets

Federal Reserve officials offered cautious commentary on inflation, with Governor Lisa Cook noting that a rate hike is possible if price pressures move in the "wrong direction." Other officials, including Fed's Jefferson, described current monetary policy as "well positioned" amidst ongoing risks, leaving markets in a holding pattern ahead of key US PCE inflation data.

Gold Steadies Amid Heightened US-Iran Tensions

Gold prices held flat as traders monitored an escalation in geopolitical uncertainty between the United States and Iran. The U.S. military carried out new strikes on an Iranian military site, and President Trump signaled he was in no rush to secure a deal, factors which can increase safe-haven demand for precious metals.

Diverging Policies from Global Central Banks

Central banks around the world are pursuing varied policy paths, reflecting differing economic conditions. The Bank of Mexico reduced its 2026 GDP growth forecast, while the Reserve Bank of New Zealand held its policy rate steady despite some internal committee members favoring a hike. Meanwhile, the effects of Japan's recent currency interventions have reportedly faded, highlighting ongoing complexities in the global foreign exchange markets.