Geopolitical Tensions Drive Oil and US Dollar Higher

Heightened geopolitical tensions in the Middle East have roiled global markets, driving volatility and boosting oil prices. Following comments from US President Donald Trump that a deal with Iran was "over" and threats of further military action, investors have moved away from riskier assets, increasing safe-haven demand for the US Dollar.

Silver Pressured by Stronger Dollar and Fed Outlook

Silver prices faced downward pressure as the strengthening US Dollar made the metal more expensive for foreign buyers. The dollar's rally was supported by its safe-haven appeal amid the escalating US-Iran conflict and caution among traders ahead of Federal Reserve Open Market Committee (FOMC) minutes, which are anticipated to reveal a hawkish policy stance.

Hawkish Stances from Global Central Banks

Central banks outside the United States are also signaling monetary tightening, with the Reserve Bank of New Zealand delivering a hawkish 25 basis point interest rate hike and indicating further increases are likely. In the United Kingdom, market expectations for future rate hikes from the Bank of England have been repriced, providing support for the British Pound amid persistent inflation.