Precious Metals Diverge on Policy and Geopolitical News

Gold prices retreated from recent highs as hawkish Federal Reserve minutes and rising US-Iran tensions provided some support for the US Dollar. In contrast, silver surged to a fresh two-month high, with market action linked to a US Treasury plan to increase its bond buybacks.

US Treasury Action Pressures Dollar

The US Dollar hovered near three-month lows after the US Treasury announced it would double its bond buyback program, a move that helped stabilize the bond market. However, the dollar found some underlying support from the Federal Reserve's hawkish meeting minutes and escalating geopolitical risks in the Middle East.

China Holds Interest Rates Steady

The People's Bank of China kept its key loan prime rates unchanged for the 15th consecutive month, a decision that provided some support for regional currencies like the New Zealand Dollar. In a separate trade development, China's Commerce Ministry imposed anti-dumping tariffs on certain polymer imports from the US, EU, Taiwan, and Japan.

Mixed Economic Data from Asia-Pacific

Economic reports from the Asia-Pacific region showed contrasting trends, as Australia's unemployment rate rose to a near five-year high, weighing on the Australian Dollar. Conversely, Japan's exports surged on strong demand for chips, though a record rise in import costs widened the country's trade deficit and pressured the yen.