Precious Metals See Gains

Gold prices recorded modest gains, with some reports linking the move to sliding oil prices easing inflation worries. Silver also advanced, attracting some buyers amid geopolitical developments in the Middle East concerning a potential US-Iran deal.

Broad Strength Seen in US Dollar

The U.S. Dollar demonstrated broad strength, outperforming a basket of major currencies amid growing expectations for further interest rate hikes from the Federal Reserve. This strength pushed the Euro, Swiss Franc, and Japanese Yen lower, while the Canadian dollar hit a 14-month low against the greenback. The Australian and New Zealand dollars also remained weak against their U.S. counterpart.

Geopolitical Developments Influence Oil and Risk Sentiment

Crude oil prices declined as reports suggested progress in peace talks between the US and Iran, which also saw the Indian Rupee hold its gains. However, overall market sentiment remained mixed, as some investors continued to weigh geopolitical risks and uncertainties that influenced risk-off sentiment and safe-haven demand in some financial markets.