Geopolitical Tensions Influence Market Sentiment

Market sentiment was influenced by renewed geopolitical developments in the Middle East, including reports of an end to the US-Iran ceasefire and subsequent warnings from Iranian officials. While the developments led to some risk-off moves in currency markets and a brief spike in crude oil prices, equity markets appeared largely unfazed by the news.

Federal Reserve Report Reinforces Inflation Concerns

The U.S. Federal Reserve released its monetary policy report, highlighting that inflation remains elevated and its price stability goal has not yet been achieved. This acknowledgement reinforced market expectations that the central bank may continue its policy tightening, with traders closely watching the Fed's outlook alongside geopolitical news.

Silver Prices Weighed by Fed Outlook and Dollar Action

Silver prices edged slightly lower as the prospect of further Federal Reserve interest rate hikes limited the metal's appeal. The downward pressure occurred despite Middle East tensions that typically support safe-haven assets, while the US Dollar Index traded within a volatile range as investors weighed competing macroeconomic factors.