Precious Metals Fall on Inflation and Rate Concerns

Gold prices tumbled to an eight-month low below $4,000, while silver prices also remained subdued, tracking for a weekly drop of over 7%. The declines were attributed to rising Middle East tensions that are fueling inflation concerns and reinforcing expectations for elevated U.S. interest rates, thereby increasing the opportunity cost of holding non-yielding assets.

Geopolitical Tensions Bolster US Dollar

A new wave of U.S. strikes against Iran and threats from Tehran to close the Red Sea oil route have intensified geopolitical risk, prompting safe-haven flows into the U.S. Dollar. The greenback gained ground against several major currencies, including the Chinese Yuan, Australian Dollar, and British Pound, as traders moved away from riskier assets.

Japanese Yen Weakens Amid Intervention Warnings

The Japanese Yen softened against the stronger U.S. Dollar, influenced by the broader risk-off market sentiment and the Bank of Japan's monetary policy stance. In response to the currency's decline, Japan's finance minister stated that authorities are ready to act on currency movements whenever necessary, flagging the risk of intervention.

Global Equities Decline on Risk Aversion

A broad risk-off sentiment swept through Asian financial markets, mirroring a sharp sell-off in U.S. technology stocks. Japan's Nikkei index was particularly affected, plunging over 4% as investors reacted to negative cues from Wall Street and growing geopolitical uncertainty.