Precious Metals Decline Amid Bearish Sentiment

Gold and silver prices fell during Tuesday's trading session, pressured by a stronger US dollar and persistent bearish sentiment. Silver depreciated significantly, trading near seven-month lows and drawing closer to the $61.00 level, with analysts pointing to ongoing outflows from exchange-traded funds (ETFs). Gold prices also trended lower in global markets and in India, with spot prices extending their descent amid expectations of further Federal Reserve rate hikes.

Dominant US Dollar Holds Near Multi-Month Highs

The US Dollar remained firm against a basket of major currencies, with the US Dollar Index (DXY) trading near a 13-month high as investors awaited key US PMI data. The dollar's resilience is attributed to a hawkish Federal Reserve stance and widening interest rate differentials compared to other central banks like the ECB. This broad-based strength in the greenback has created significant headwinds for dollar-denominated commodities, including gold, and has also weighed on commodity-linked currencies like the Australian and New Zealand dollars.

Risk-Off Mood Grips Global Markets

A cautious tone prevailed across global financial markets, with Asian and European equity indices declining amid a technology stock-led slump and general risk aversion. Market participants are also closely watching geopolitical developments, particularly progress in US-Iran peace talks, which has contributed to a notable decline in crude oil prices. This broader risk-off environment and geopolitical uncertainty provided the backdrop for currency and commodity movements.