Precious Metals See Mixed Price Action

Gold prices held recent gains, trading above $4,300 amid cautious markets, with prices also noted to be rising in India. In contrast, silver edged lower to trade below $70 as traders took profits ahead of key central bank announcements. Some market analysis views recent price fluctuations as corrections within a broader, long-term upward trend for precious metals.

Central Bank Policies in Focus

Global central bank policy divergence was a key market driver, with investors anticipating a potentially hawkish shift from the US Federal Reserve. The Reserve Bank of Australia held its key interest rate but maintained a tightening bias, while the Bank of Japan proceeded with a rate hike. Amid these policy shifts, a World Gold Council survey indicated a growing number of central banks plan to increase their gold reserves.

Geopolitical Developments and a Firmer US Dollar

Market sentiment was influenced by reports of a framework agreement between the United States and Iran, which contributed to a fall in crude oil prices. However, some analysis suggests significant supply risks related to the Strait of Hormuz persist despite the diplomatic progress. This cautious market environment supported the US Dollar, which held steady or gained against several major currencies, including the Euro and Swiss Franc.