Gold and silver retreat in Asia as optimism over a potential Iran deal offsets geopolitical risks in the Strait of Hormuz.
Oil futures plunged nearly 7% overnight as hopes for a US-Iran deal raised prospects of reopening the Strait of Hormuz, easing supply disruption fears. The drop followed reports of a potential breakthrough in negotiations, despite recent military exchanges in the region.
Gold and silver prices slipped in Asian trading, reflecting reduced safe-haven demand. The PBOC set the USD/CNY midpoint at 6.8288, weaker than the estimated 6.7822, signaling potential yuan depreciation pressures. Sri Lanka’s central bank hiked rates by 100 basis points to combat inflation driven by energy costs.
US military confirmed defensive strikes in southern Iran after Iranian forces targeted US Navy assets, though CENTCOM maintained the ceasefire remains intact. Markets await the Bank of Korea’s decision on Thursday, with rate hike bets building for Q3.