Precious Metals Pressured by Surging US Dollar

Gold prices fell to a new year-to-date low as a strengthening US Dollar weighed heavily on the precious metals market. The dollar's rally was attributed to expectations for a hawkish Federal Reserve and safe-haven demand linked to US-Iran geopolitical risks. While gold saw significant selling pressure, silver prices found a technical cushion after an initial drop, with traders looking toward upcoming US jobs data for further direction.

Divergent Global Central Bank Policies Drive FX Volatility

Broad-based US Dollar strength was a dominant theme, contributing to significant currency market volatility. The Japanese Yen tumbled to a new four-decade low against the dollar, prompting Japanese officials to reiterate their readiness to intervene in the market. In contrast, hawkish minutes from the Reserve Bank of Australia failed to buoy the Australian Dollar, while the Euro, British Pound, and Canadian Dollar also softened against the greenback amid varying central bank outlooks.

China's Economic Activity Shows Signs of Expansion

Recent economic data from China pointed to an expansion in both factory and service sector activity, a potentially positive signal for industrial metals demand. China's official manufacturing Purchasing Managers' Index (PMI) rose to 50.3 in June, beating consensus estimates and returning to expansionary territory. The non-manufacturing PMI also showed growth, indicating a modest improvement in the world's second-largest economy.