Geopolitical Tensions Escalate

Tensions between the United States and Iran intensified, contributing to a rise in oil prices. The US confirmed it conducted another round of military strikes, with President Trump stating that strikes will continue until a deal is reached, even as talks were reportedly held. In response, Iran's IRGC stated that the critical Strait of Hormuz will remain closed.

US Dollar Weakens on Inflation Data

The US Dollar weakened broadly against other major currencies following the release of softer-than-expected US inflation data. These figures have dampened market expectations for future interest rate hikes from the Federal Reserve. Consequently, currencies including the Euro, British Pound, and Japanese Yen gained ground against the dollar.

China's Economic Growth Disappoints

China's economy expanded by 4.3% year-over-year in the second quarter, missing market forecasts and slowing from the previous quarter's pace. Despite the slowdown to a multi-year low, China’s National Bureau of Statistics commented that the nation's economy remains resilient.

Silver Prices Steady Amid Market Caution

In the precious metals space, silver prices held steady as traders assessed multiple conflicting market drivers. The market appeared to be balancing the supportive factor of a weaker US Dollar against broader caution stemming from geopolitical risks in the Middle East and concerns over slowing economic growth in China.