US Dollar Weakens on Fiscal and Debt Concerns

The US Dollar Index softened below the 99.00 level amid concerns over US fiscal policy and debt strategy. The weakness was largely attributed to the US Treasury's plan to expand buybacks of longer-dated government debt, which caused the greenback to lose ground against major currencies including the Euro, British Pound, and Australian Dollar.

Gold and Silver Prices Strengthen

Precious metals prices advanced, with gold gaining significant traction to trade above $4,600, its highest level since mid-May. This rally was attributed to the weaker US Dollar, while silver also maintained a bullish posture, holding near a two-month high below the $70.00 mark.

Geopolitical and Trade Tensions Rise

Market sentiment was also shaped by escalating international tensions on multiple fronts, creating a cautious backdrop for traders. Canada announced it would impose retaliatory tariffs in an emerging trade war with the United States. Separately, markets were on watch for an expected announcement of stricter US sanctions against Iran, a development that influenced oil prices and equity trading in Asia.