Strong US Dollar Weighs on Major Currencies

The US Dollar Index climbed to its highest level since March 2025, trading above the 102.00 mark as its bullish trend continued for a fifth straight day. This strength exerted pressure on other major currencies, with the British Pound, Euro, Canadian Dollar, and Australian Dollar all losing ground against the greenback. Market participants are now looking toward the upcoming US Non-Farm Payrolls (NFP) report for further insight into the Federal Reserve's potential rate path.

Middle East Tensions and Energy Supply Concerns Support Oil

Crude oil prices held firm as geopolitical tensions in the Middle East escalated, with the Pentagon reportedly considering the deployment of a third aircraft carrier and additional troops to the Persian Gulf. This development contributed to keeping West Texas Intermediate (WTI) prices near $92.00 per barrel. Separately, the US administration has reportedly urged its European allies to release diesel from their national emergency stockpiles, highlighting broader concerns over energy supply.

Precious Metals Face Headwinds from Strong Dollar and Inflation

Gold struggled to attract buyers as the strengthening US Dollar created significant headwinds for the precious metal. Meanwhile, silver prices also retreated, slipping below $60.50 per ounce after posting gains the previous day. The decline in silver was linked to reignited inflation concerns, driven by the rise in crude oil prices stemming from geopolitical instability.