Precious Metals Surge on Safe-Haven Demand

Gold prices reached a three-month high above $4,600, fueled by escalating risks in the Middle East and a softer U.S. Dollar. Silver also saw a significant rally, extending its gains for a third straight day and testing the $70 level as investors sought flight-to-quality assets amid concerns over the U.S. fiscal outlook. fxstreet +1

Geopolitical Risks Impact Market Sentiment

Concerns over conflict in the Middle East are influencing global economic expectations, with German business sentiment forecast to weaken due to the tensions and related energy price increases. While Iran's president has publicly urged an end to the war, the situation remains a key driver for markets, even as economies like the United Kingdom have shown resilience to the associated energy shocks. fxstreet +3

Global Trade and Tariff Policies in Focus

International trade policies remain a key theme, with the U.S. administration reportedly discussing tariffs with Brazil and separately allowing temporary tariff-free beef imports to lower domestic prices. In Europe, a German politician called for new EU tariffs on Chinese hybrid cars, while Mexico stated it expects a trade deal with outcomes similar to the US-Canada agreement. investing +4

US Dollar Softens Amid Shifting Central Bank Outlooks

The U.S. Dollar has softened against several currencies, driven partly by fading expectations for Federal Reserve rate hikes, which has supported the New Zealand Dollar's rally. Meanwhile, other central banks are maintaining cautious policy stances, with the Bank of Thailand expected to hold its key interest rate and the Swiss National Bank keeping negative rates on the table. fxstreet +4