Geopolitical Tensions Bolster Safe-Haven Demand
Renewed military action between the United States and Iran is fueling a risk-off sentiment in global markets, according to reports. The US Central Command confirmed its latest strikes on Iranian military command centers, marking the tenth consecutive day of such operations. This escalation has increased demand for safe-haven assets as investors grapple with uncertainty in the Middle East.
Strong US Dollar Curbs Commodity Upside
The US Dollar Index is holding firm near a one-week high as geopolitical tensions drive safe-haven flows primarily into the greenback. The dollar has strengthened against other major currencies, including the Euro and the Swiss Franc. This broad-based dollar strength is noted as a factor limiting the upside potential for dollar-denominated assets like gold and silver.
Gold and Silver Rise Amid Market Crosscurrents
Gold prices saw a cautious rise, while silver attracted buyers for a third consecutive day to trade above the $57 mark. The advance in precious metals is supported by their traditional safe-haven appeal amid Middle East turmoil, though some reports noted that oil prices eased on hopes for diplomatic mediation. Gains for gold were reportedly capped by the strong performance of the US Dollar and lingering expectations of future Federal Reserve rate hikes.
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