Precious Metals Pressured by Strong Dollar and Fed Outlook

Silver prices faced downward pressure, falling for a third consecutive day amid a broadly stronger US Dollar. Market sentiment is being shaped by rising expectations for future Federal Reserve interest rate hikes, with traders keenly awaiting key US PCE inflation data for further direction. The dollar's strength was evident against other major currencies, including the Euro and the New Zealand Dollar, which traded near multi-year lows.

Heightened Geopolitical Tensions in Middle East

Geopolitical risks in the Middle East are escalating following statements from regional powers. Iran's Islamic Revolutionary Guards Corps declared that safe passage through the critical Strait of Hormuz is only possible via routes designated by Iran. Separately, Israel's defense minister stated that its military would remain in southern Lebanon despite external pressure, signaling continued regional instability.

Focus on Bank of Japan Policy and Currency Markets

The Japanese Yen remains near multi-decade lows against the dollar, keeping currency markets on high alert for potential intervention from Japanese authorities. This comes as Bank of Japan board member Naoki Tamura made hawkish remarks, suggesting the country's neutral interest rate is around 2% and that policy rates should move toward that level. Meanwhile, the People's Bank of China set a weaker reference rate for the yuan, reflecting ongoing currency dynamics in the region.