Precious Metals Buoyed by Geopolitical Tensions
Gold prices held firm above the $4,100 mark, supported by a combination of a weaker US Dollar and escalating geopolitical tensions between the US and Iran. Similarly, silver attracted fresh buyers and held ground above the $59.00 level, stalling a modest pullback from a recent two-week high. The market backdrop of rising international conflict underpinned safe-haven demand for both metals.
Broad-Based US Dollar Weakness
The US Dollar Index (DXY) extended its decline for a second consecutive day, trading around the 101.00 level despite a general increase in market risk aversion. The dollar lost ground against a range of major currencies, including the Euro, British Pound, and Swiss Franc. This widespread weakness in the greenback provided a supportive environment for dollar-denominated commodities.
Oil Prices Surge on Middle East Supply Fears
West Texas Intermediate (WTI) crude oil prices climbed for a fifth straight day, rising above $87.00 per barrel to a six-week high. The rally was fueled by increasing fears that escalating Middle East tensions could threaten key supply choke points and lead to widespread disruptions. This surge in oil prices highlighted the growing geopolitical risk premium influencing financial markets.
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