Precious Metals Rise on Safe-Haven Demand

Gold and silver prices advanced as falling US Treasury yields and a selloff in equity markets bolstered the appeal of precious metals. Gold rebounded above the $4,150 level, snapping a three-day losing streak, while silver also saw gains amid renewed safe-haven demand.

US Inflation Data and Fed Commentary in Focus

Hotter-than-expected US Producer Price Index (PPI) data provided support for the US Dollar, though markets remained focused on monetary policy direction. A Chicago Fed official commented that September was a disappointing month for inflation and warned that strong demand from sectors like AI could keep it elevated, while traders awaited a key speech from Fed Governor Kevin Warsh.

Geopolitical Tensions and Oil Market Dynamics

Energy markets reacted to a mix of geopolitical and supply-side news, causing oil prices to edge lower after a strong week. The IEA confirmed a release of 100 million barrels of oil, while the US President's statement ruling out ground troops in Iran eased some supply disruption fears, countering concerns from a Houthi attack in Yemen and the broader conflict's effect on shipping patterns.

Divergent Global Central Bank Signals

Central banks outside the US presented differing economic outlooks and policy leanings. A weak Australian jobs report diminished prospects for a rate hike by the Reserve Bank of Australia, whereas a Bank of Japan board member argued for less caution on policy tightening. Meanwhile, the Bank of England's Governor noted it was too early to form strong views on secondary inflation effects.