Gold Rallies on US Dollar Weakness

Gold prices rose over 1% to trade around $4,373 as the US Dollar softened amid speculation of a potential currency intervention to support the Japanese Yen. The rally occurred even as US Treasury yields held firm following a jobs report that signaled some cooling in the labor market.

Heightened Middle East Tensions Fuel Volatility

Escalating tensions between the US and Iran contributed to market volatility and an elevated geopolitical risk premium, which supported safe-haven assets. US President Trump's warning of potential further strikes helped push West Texas Intermediate (WTI) oil prices to fluctuate near a six-week high.

Fed Report Shows Modest Growth and Rising Prices

The Federal Reserve's latest Beige Book survey indicated that US economic activity increased modestly in recent weeks, while prices rose in a majority of districts. This report, combined with other economic data, keeps market attention on the health of the US economy for insight into the future direction of monetary policy.

US Dollar Strength Pressures Global Currencies

A broadly strong US Dollar, supported by higher Treasury yields and expectations for Federal Reserve policy, exerted pressure on several global currencies, including the British Pound and Singapore Dollar. Separately, the Bank of Canada held its interest rate steady but delivered a cautious message, citing risks from rising oil prices and US trade actions.