Precious Metals Decline Ahead of Inflation Data

Gold and silver prices trended lower as market participants adopted a cautious stance ahead of the release of key US inflation data. Gold extended its losses for a third consecutive day, while silver prices also fell, with both metals feeling pressure as investors awaited the Consumer Price Index (CPI) report for fresh signals on the Federal Reserve's monetary policy direction.

US Dollar and Fed Policy in Focus

The US Dollar was a primary focus, exhibiting mixed performance as traders awaited the pivotal US CPI report. An earlier dip in US Treasury yields caused the dollar to weaken against several currencies, but it later steadied as markets positioned for the inflation figures, which are widely expected to influence future Fed interest rate decisions. Commentary from a Fed official signaling a data-dependent approach added to the market's watchful mood, keeping many major currency pairs in tight trading ranges.

Energy Market Dynamics and Geopolitical Risk

Developments in global energy markets and escalating geopolitical tensions contributed to market uncertainty. West Texas Intermediate (WTI) crude oil prices eased following reports of surging OPEC+ output, while the International Energy Agency (IEA) lowered its longer-term oil demand outlook. Conversely, geopolitical risks remained elevated, with Yemen's Houthis confirming attacks on Saudi Arabian oil facilities and continued Russian strikes on Ukrainian energy infrastructure.