Easing Middle East Tensions Weigh on Safe Havens

Reports that the US will not take immediate military action against Iran appeared to reduce safe-haven demand, contributing to a pullback in silver prices and a drop in crude oil from recent highs. However, underlying supply risks remain in focus as Yemen's Houthis stated they will continue attacks on Saudi infrastructure.

Central Bank Policy in Focus for Precious Metals

Gold prices steadied near a three-month low as market participants turned their attention to this week's Federal Reserve policy meeting for directional cues. The focus on upcoming central bank decisions, including from the Bank of Japan and the Reserve Bank of New Zealand, is also a primary driver for major currency pairs.

Mixed Signals on Global Diplomatic and Trade Fronts

On the diplomatic front, a trilateral meeting between the US, Ukraine, and Russia is reportedly scheduled for November, signaling potential de-escalation talks. Separately, economic tensions persist as China warned of countermeasures in response to a US proposal to expand investment restrictions. China's central bank also set its daily yuan reference rate slightly stronger against the US dollar.