Precious Metals Decline on US Inflation Data

Gold and silver prices fell as recent US Personal Consumption Expenditures (PCE) inflation data reinforced market expectations for a potential Federal Reserve interest rate hike. The stronger inflation reading put pressure on non-yielding assets, with gold dropping and silver extending its decline to a multi-month low.

Middle East Tensions Drive Oil Market Volatility

Crude oil markets experienced volatility amid conflicting developments in the Middle East. Reports of Houthi drone and missile attacks on Saudi Arabian oil facilities and military targets heightened supply-side risks, while separate reports of diplomatic progress between the US and Iran helped to offset some of those concerns.

US Dollar Eases as Global Central Bank Policies Diverge

The US Dollar Index weakened against a basket of major currencies despite the hawkish Fed outlook, as traders assessed differing monetary policy signals from other central banks. The British Pound gained on hawkish Bank of England sentiment and the Euro continued its recovery, while central bank actions and inflation data from Japan, Australia, and China also contributed to currency market movements.