Fed Anticipation Weighs on US Dollar

Market participants are exhibiting caution ahead of the Federal Reserve's upcoming monetary policy announcement, leading to broad uncertainty. This hesitancy has put pressure on the US Dollar, which has struggled against a basket of currencies as traders await signals on the central bank's rate path. Analysts note that while a "hawkish hold" is widely anticipated, the possibility of a surprise rate hike remains a key risk for markets.

Gold and Silver Prices Rebound

Gold prices recovered from recent lows to trade near the $4,050 level, supported by the softer US Dollar environment heading into the Federal Reserve's decision. Silver also gained, pushing back above the $58 mark after a two-day decline. In contrast, some regional markets experienced different price action, with reports indicating a fall in gold prices in India.

Middle East Tensions Escalate

Geopolitical risks intensified after Iran's Islamic Revolutionary Guard Corps confirmed it had struck a US base in Jordan, souring the overall market mood. The situation was further complicated by Iran's rejection of a proposal for joint regional management of the critical Strait of Hormuz waterway. These events have fueled a rebound in crude oil prices amid concerns over potential supply disruptions.