Geopolitical Tensions Bolster Oil and Risk-Off Sentiment

Escalating geopolitical risks, centered on U.S.-Iran tensions and incidents in the Strait of Hormuz, have tightened energy markets and pushed Brent crude oil prices toward $90 a barrel. This has fueled broader risk-off sentiment among investors, although a slight easing in oil prices occurred after reports that Tehran remains open to diplomatic channels.

Gold and Silver Prices Gain on Market Volatility

Gold prices registered marginal gains, consolidating in a tight range as traders weighed a stalled recovery in the US Dollar against volatility in oil markets. Silver saw a more decisive move, with prices rising over 1.4% to trade above $56 per troy ounce during Monday's session.

US Dollar Guided by Fed Outlook and Energy Prices

The US Dollar traded without clear direction as market participants widely anticipate the Federal Reserve will keep interest rates unchanged at its upcoming July meeting. While the dollar showed weakness against several major currencies, its downside was limited by support from higher energy prices stemming from global tensions.

Positive Signals for Silver Industrial Demand

An underlying driver for silver's industrial demand strengthened as reports indicated a rise in China's solar exports to markets in Asia and Africa. This growth in a key end-use for silver occurred despite an overall decline in the country's total solar exports.