Precious Metals Gain on Dollar Weakness

Gold and silver prices advanced, with silver hitting a one-month high near the $62.00 level following a technical breakout. Gold prices also saw gains in markets like India, supported by a confluence of factors including investment demand, real interest rates, and broader macroeconomic dynamics.

US Dollar Declines Amid Improved Risk Appetite

The US Dollar Index (DXY) edged lower for a second consecutive day, approaching two-month lows as risk sentiment improved across markets. The dollar's weakness was evident against multiple currencies, including the Swiss Franc and British Pound, though some analysts believe the dollar's broader third-quarter uptrend remains intact.

Easing Geopolitical Tensions Boost Equities

Global equity markets rallied as easing geopolitical tensions and softer inflation data supported risk appetite. Oil prices fell, with Brent crude dropping below $80 per barrel on hopes for a US-Iran deal that could reopen the Strait of Hormuz, although reports noted potential for delays from the Iranian side.

Mixed Economic Data and Central Bank Inaction

The Reserve Bank of India held its key interest rate steady as it awaits a clearer path for inflation, a move that caused the Indian Rupee to pare its earlier gains. Elsewhere, New Zealand's dollar weakened after its unemployment rate jumped to its highest level in over a decade, while Indonesia's Rupiah was supported by strong domestic GDP figures.