Precious Metals Gain on Weaker Dollar and Easing Geopolitical Tensions

Gold and silver prices advanced as reports indicated the United States would pursue diplomatic talks with Iran after canceling a planned military strike. This de-escalation in Middle East tensions contributed to a weaker US Dollar Index, which fell on improved market risk sentiment, providing further support for the precious metals.

US and Japan Conduct Joint Currency Intervention to Strengthen Yen

The Japanese Yen appreciated sharply following an announcement of joint currency intervention by Japanese and US authorities, with traders remaining on alert for further action. While Japan's finance minister offered no comment on the move, other officials suggested a readiness to repeat the intervention, which was described as a potential peak of the US-Japan currency partnership.

Chinese Manufacturing Growth Slows in July

Survey data from China indicated that factory activity growth slowed to a four-month low in July, with the manufacturing PMI reading falling short of market forecasts. The People’s Bank of China also set the daily USD/CNY reference rate slightly weaker than the previous session. Despite the weaker Chinese data, currencies like the Australian and New Zealand dollars held their ground.

Crude Oil Prices Fall on Supply Outlook and Middle East Talks

West Texas Intermediate (WTI) crude oil prices declined as the prospect of US-Iran peace talks eased concerns about potential supply disruptions in the Middle East. Additional downward pressure came from reports of a planned output expansion from OPEC+, with the falling oil prices weighing on the Canadian Dollar.