Precious Metals Correct Lower

Gold and silver prices declined during Tuesday's trading, pressured by broader market dynamics. Gold's fall was attributed to rising US bond yields and a stronger US Dollar, which were bolstered by renewed inflation concerns stemming from higher oil prices. Silver also experienced a significant correction, with prices falling more than 1% to near $61 during the Asian session.

US Dollar Gains on Geopolitical Risk

The US Dollar found support from renewed geopolitical tensions in the Strait of Hormuz, with Iranian officials warning against US threats. These developments contributed to a rise in crude oil prices, which in turn supported the dollar against other currencies and weighed on assets like the Indian Rupee. This safe-haven demand for the dollar appeared to counteract market sentiment that bets on Federal Reserve rate hikes are fading.

Broader Markets Show Caution

A cautious tone prevailed in global markets, with Asian equities falling amid a selloff in the technology sector. In currency markets, major pairs like EUR/USD and USD/JPY traded in consolidative patterns as the US Dollar struggled for firm direction. The Euro held within its recent range against the dollar, largely unmoved by an unexpected rise in German industrial production.