Geopolitical Tensions Weigh on Precious Metals

Gold and silver prices retreated amid a shift in market sentiment following comments from US President Donald Trump that the ceasefire with Iran is "over." The heightened geopolitical uncertainty was compounded by new US Treasury sanctions against an Iranian official and a subsequent denial from Tehran regarding any request for talks. These tensions also contributed to a fall in US Treasury bond prices, pushing yields higher as investors factored in potential inflationary risks.

Focus Shifts to US Inflation Data and Fed Commentary

Market participants are looking ahead to key US economic events, including the release of the Consumer Price Index (CPI) and congressional testimony from Federal Reserve Chair Kevin Warsh. This scrutiny comes after the Fed released its semiannual monetary policy report, reaffirming its commitment to achieving price stability. The upcoming data and central bank remarks are viewed as a significant test for the US Dollar and will be closely monitored for clues on future policy direction.

Asian Central Banks Respond to Inflationary Pressures

Central banks across Asia are signaling a more hawkish policy stance in response to persistent inflation. Economists expect the Bank of Korea to raise its key interest rate, while Taiwan's central bank is also seen leaning toward a rate hike to manage rising consumer prices. While economic data from Singapore indicates resilient growth, some regional currencies, such as the Indonesian Rupiah, face weakness due to external pressures from elevated US yields and Middle East tensions.