Fed's Hawkish Stance Bolsters US Dollar

The US Federal Reserve's decision to hold interest rates steady while maintaining a hawkish tone contributed to a stronger US Dollar. The Dollar Index gained ground as the greenback firmed against other major currencies like the Euro, British Pound, and Japanese Yen. This monetary policy outlook left Asian stock markets uncertain and traders awaiting further economic data.

Middle East Tensions Escalate

Geopolitical risk increased following reports that the United States conducted military strikes against targets in Iran. These actions were reportedly in response to Iranian missile attacks on US forces in the region. The escalating conflict was noted as a factor influencing currency and commodity markets, although some assets like WTI crude oil experienced profit-taking despite the hostilities.

Gold and Silver Face Headwinds

Precious metals prices were influenced by competing factors, with the strong US Dollar and hawkish Fed bets creating headwinds. Gold attracted some buyers amid the geopolitical uncertainty but struggled to sustain gains, trading below the $4,100 mark. Silver also depreciated, with its price remaining below $58.00 as the market weighed the impact of the Fed's policy stance.