US Dollar Weakens on Geopolitical Optimism, Boosting Gold

Market sentiment improved on reports of a potential 60-day ceasefire extension between the US and Iran, leading to broad-based weakness in the US Dollar. The greenback fell against major currencies, including the Euro, British Pound, and Canadian Dollar, as the news reduced safe-haven demand. This decline in the US currency, coupled with positive risk sentiment, contributed to a rally in gold prices during Monday's trading.

Oil Prices Ease Amid Deal Hopes

Global oil prices declined as optimism around a US-Iran agreement suggested the potential for increased supply in the market. Benchmark crude prices, such as WTI and Brent, tested key psychological support levels as they retreated from recent highs. This downward pressure on oil was noted as a factor influencing commodity-linked currencies, though it was largely overshadowed by the weaker US Dollar.

Asian Economic Outlook Supported by Tech Demand

In broader economic news, Singapore's 2026 GDP growth forecast was revised higher, signaling underlying strength in the region's economy. The improved outlook is attributed to sustained demand related to artificial intelligence and strong electronics indicators. This AI-driven tailwind is seen as helping to offset negative impacts from regional conflicts.