Renewed hostilities in the Gulf and hawkish Fed commentary weigh on gold, while USD/CNY fixing misses estimates.
Gold prices fell sharply as geopolitical tensions in the Gulf intensified, with Kuwait reporting missile and drone attacks. The US struck an Iranian military site near Bandar Abbas, escalating regional risks and pressuring safe-haven assets.
The PBOC set the USD/CNY reference rate at 6.8240, weaker than the 6.7861 estimate, signaling potential yuan depreciation. Fed officials, including Jefferson and Kashkari, emphasized persistent inflation risks, with Kashkari calling price pressures “much too high.”
Bitcoin struggled to hold above 74,400 USD, reflecting broader risk aversion. Japanese bond yields rose on fiscal concerns, while the Bank of Korea held rates at 2.50% but signaled future hikes.