Gold Prices Modulate on Shifting Geopolitical Risk

Gold prices pulled back from recent highs as the United States paused planned military action against Iran, introducing uncertainty around potential diplomatic talks. While the prospect of negotiations and a general easing of Mideast tensions weighed on safe-haven assets, an Iranian official simultaneously stated the country would not permit a second corridor in the Strait of Hormuz.

US Dollar Strengthens on Economic Data and Intervention

The U.S. Dollar regained composure and strengthened against currencies like the Australian and New Zealand Dollars, adding pressure to dollar-denominated commodities. The Greenback's recovery was supported by positive U.S. economic data and a reported intervention in foreign exchange markets by American and Japanese authorities.

Federal Reserve Meeting Schedule Under Review

Discussions surrounding the Federal Reserve's operational procedures have surfaced, with reports indicating Fed Chair Kevin Warsh is considering reducing the number of policy-setting meetings from eight to six per year. This potential change to the FOMC's annual schedule is reportedly being evaluated, according to people familiar with the matter.