Gold and Silver Weaken on Inflation Concerns

Gold prices declined as rising oil costs fueled concerns about inflation and increased expectations for a Federal Reserve rate hike. A stronger US Dollar, also bolstered by higher oil prices, created additional headwinds for precious metals. Similarly, silver prices struggled and recorded losses, with the metal's decline attributed to elevated US bond yields driven by the same inflationary pressures.

Geopolitical Tensions Drive Oil Prices Higher

Market focus was drawn to increasing crude oil prices, which were a primary driver of the inflation fears impacting precious metals. The rise in oil was linked to heightened geopolitical tensions after reports that US forces struck multiple Iranian tankers in response to attempted attacks on a US warship.

Forex Markets Await Central Bank Cues

In the broader financial markets, major currencies were relatively contained as traders awaited key inflation data and central bank decisions from the ECB. The US Dollar Index held near recent levels while currency pairs, including those involving the British Pound and Japanese Yen, saw limited net movement despite some intraday volatility.