Precious Metals Surge on Weaker US Inflation

Gold and silver prices rose sharply after United States inflation data for June came in softer than anticipated, fueling a significant drop in the US Dollar and Treasury yields. The June Consumer Price Index (CPI) fell 0.4% month-over-month, prompting traders to scale back expectations for imminent Federal Reserve rate hikes. While Fed official Austan Goolsbee called the data encouraging, he also cautioned against overreacting to a single report.

Middle East Tensions Support Oil Prices

Geopolitical focus remains on the Middle East, contributing to rising oil prices which in turn supported the Canadian Dollar. US President Trump stated the Strait of Hormuz is open to all shipping traffic except for vessels linked to Iran, while reports indicate the US is advancing talks for an Iraq-Syria oil pipeline that would bypass the strategic waterway.

Asian Economic Data Strengthens on AI Demand

Recent economic data from Asia surprised to the upside, with China’s trade figures significantly beating expectations on the back of strong global demand for AI-related and technology goods. This trend was also noted in Singapore, where GDP growth forecasts were lifted due to persistent AI tailwinds in the manufacturing and electronics sectors. Meanwhile, a US Commerce Department official indicated that regulatory action concerning chips and AI is forthcoming.