Strong US Dollar Weighs on Major Currencies

The US Dollar strengthened broadly, approaching recent highs and exerting pressure on a range of other currencies. The Euro, Swiss Franc, British Pound, and commodity-linked currencies like the Australian and New Zealand Dollars all registered declines against the firm greenback, with the dollar's strength attributed in part to market expectations of a continued hawkish stance from the US Federal Reserve.

Mixed Signals Emerge from US-Iran Geopolitics

Financial markets reacted to developments in US-Iran relations, with an initial framework for de-escalation initially boosting risk appetite. However, this optimism was later tempered by reports that the two nations disagree on the interpretation of the document they signed, causing uncertainty and souring some of the initial positive sentiment.

Gold Holds Steady Amid Conflicting Drivers

Gold prices traded within a narrow range as conflicting market forces created a stalemate for the precious metal. The potential for geopolitical de-escalation between the US and Iran served to reduce safe-haven demand, but this downward pressure was counterbalanced by headwinds from a strong US Dollar and expectations of a hawkish Federal Reserve.