US Dollar Strengthens on Strong Data and Hawkish Fed Tone

The US Dollar gained broadly against major currencies, bolstered by stronger-than-expected US Retail Sales figures that signaled robust consumer health. Market sentiment was also shaped by commentary from Federal Reserve officials, including hawkish testimony from a Fed Chair nominee and a call from Governor Waller to overhaul regional bank operations, which contributed to a risk-averse mood in equities.

Oil Prices Rise Amid Geopolitical Uncertainty

Energy markets experienced significant volatility as traders closely monitored diplomatic developments between the US and Iran. Fading hopes for de-escalation and uncertainty surrounding a looming deadline for negotiations fueled supply concerns, causing crude oil prices to jump sharply.

Gold Tumbles as Stronger Dollar Dominates

Gold prices fell sharply by more than 2%, pressured by a surging US Dollar and rising Treasury yields. The greenback's rally, which was itself boosted by stalled US-Iran talks and strong American economic data, increased the opportunity cost of holding the non-yielding precious metal, leading to a significant sell-off.