Gold and Silver Pressured by Hawkish Fed

Gold prices retreated as hawkish commentary from Federal Reserve Chair Kevin Warsh fueled expectations for an interest rate hike, which in turn lifted US bond yields. Silver prices consolidated without a clear direction, caught between the downward pressure from rising yields and the offsetting effect of a weaker US dollar during the session.

US Dollar Weakens Despite Supportive Cues

The US Dollar Index softened on Monday, giving back some of the gains it made following the Fed's hawkish statements. This decline occurred despite rising geopolitical tensions, factors that typically support the dollar, and provided a modest lift to currencies like the British Pound, Euro, and Australian Dollar.

Middle East Tensions Rise

Geopolitical risk increased after US military strikes on Iranian assets and retaliatory missile attacks by Tehran, contributing to a rally in oil prices and a decline in equity markets. US officials indicated that the strikes would be limited in scope, as markets monitor the situation for its potential impact on global risk sentiment and commodities.

Focus on Economic Data and Global Policy

Investors are now awaiting key US economic data, including ISM and JOLTS reports, for further insight into the Fed's potential policy path. In China, weak PMI data has intensified calls for economic stimulus, while discussions at the G20 meeting centered on the global growth agenda and investment trends.