Gold Prices Weighed by Fed Outlook and Geopolitics

Gold prices retreated as the market continued to assess the Federal Reserve's interest rate outlook, which has clouded demand for the non-yielding metal. At the same time, fading optimism regarding a diplomatic resolution to conflicts in the Middle East contributed to market dynamics.

Oil Prices Rise on Supply Risks

Crude oil prices gained ground, bolstered by ongoing geopolitical tensions in the Middle East that stoked fears of potential supply disruptions. This upward price movement was further supported by reports of a draw in United States inventories, and the trend offered a foundation for commodity-linked currencies such as the Canadian Dollar.

Global Inflation and Central Bank Policies in Focus

Investors are closely monitoring inflation data from major economies for clues on future monetary policy from central banks. An expected acceleration in the UK's Consumer Price Index is heightening speculation of a Bank of England interest rate hike, while traders are also awaiting key inflation figures from New Zealand. Meanwhile, hawkish commentary from the Reserve Bank of Australia has supported the AUD, and Japanese officials affirmed policy coordination with a cautious Bank of Japan.