Geopolitical News and US Dollar Impact Metals

Reports of a ceasefire agreement between Israel and Lebanon led to a weakening of the US Dollar as risk aversion eased, providing support for precious metals. The dollar's decline was limited by factors such as persistent US-Iran tensions and strong US economic data reinforcing expectations for a "higher for longer" Federal Reserve policy. This dynamic created conflicting pressures on dollar-denominated commodities.

Gold and Silver Prices Fluctuate

Precious metals markets showed mixed behavior, with gold rebounding from a one-week low and prices rising in markets such as India. Despite the recovery, gains appeared tentative as traders weighed conflicting market signals. Silver also bounced during the session but was characterized as remaining broadly fragile.

Focus on Physical Gold Demand

Underscoring strong private appetite for bullion, a recent survey indicated that French citizens hold an estimated 4,000 tons of gold, far exceeding the nation's official reserves. Separately, on the official sector front, data showed that global central banks returned to being net purchasers of gold in April after recording net sales in the prior month.