Geopolitical Tensions Spark Volatility in Precious Metals

Gold and silver prices experienced a volatile session, driven by shifting geopolitical news from the Middle East. Gold initially fell to a six-month low, but both metals rebounded sharply as reports emerged that the US had called off planned military action against Iran, sparking a reversal in market sentiment. The de-escalation news prompted a rally in precious metals from their daily lows as market participants repositioned.

US Dollar Fluctuates on Inflation Data and Iran News

The US Dollar strengthened earlier in the day, with the US Dollar Index reaching a two-month high, following an inflation report that showed a rise in producer prices. This data-driven strength weighed on currencies like the British Pound and Australian Dollar. However, the dollar later retreated from its peak after news broke of a de-escalation in US-Iran tensions.

Asian Currencies Face Pressure Amid Global Uncertainty

A stronger US Dollar and regional concerns exerted pressure on several Asian currencies, with authorities in Japan and South Korea reportedly monitoring currency markets closely. In China, economic data pointed to an uneven recovery, though analysts noted its export prices are helping to temper global inflation. The World Bank also issued a warning, cutting its global growth outlook and noting risks from potential war fallout spreading to financial markets.