Precious Metals Under Pressure Amid Fed Bets

Gold prices faced downward pressure, with reports citing expectations for further US Federal Reserve interest rate hikes as a key headwind despite a softer US Dollar. Silver also experienced renewed selling, reversing prior gains and moving back toward its year-to-date lows. In contrast, some long-term technical analysis indicates that both precious metals are approaching critical support levels that could be significant for their future market direction.

Australian Dollar Weakens Despite RBA Rate Hike

The Australian Dollar declined against its major peers after the Reserve Bank of Australia (RBA) raised its cash rate by 25 basis points to 4.85%. The currency depreciated against the US Dollar, Japanese Yen, and New Zealand Dollar following the decision. Analysts suggest the market may be viewing the hike as a potential pause in the central bank's tightening cycle, which could weigh on the AUD.

Broader Markets Await US Election Results

A cautious tone prevailed in the wider financial markets as traders awaited the outcome of the US midterm elections, a factor contributing to some pressure on the US Dollar. Geopolitical developments, including reports of a widening conflict in the Black Sea and ongoing Middle East tensions influencing crude oil prices, also remained a focus for investors. The price of WTI crude saw a modest rebound, though gains were reportedly capped by hopes for a diplomatic resolution between the US and Iran.