Global markets are set to close the first week of March under the growing influence of geopolitical risk stemming from the Middle East conflict. One of the most visible market responses has been the sharp appreciation of the US Dollar which climbed to a three-month high, said an expert.
The US dollar and Treasury yields could come under pressure as sentiment shifted after indications that the conflict in the Middle East could move toward a quicker resolution than previously expected. The expectations of a decrease in tensions triggered a pullback in oil prices, said an industry expert.
Gold and silver prices tumbled on Friday as investors around the world took profits after a historic rally that sent precious metals to record highs, a retreat accelerated by a rebound in the US dollar and shifting expectations around American monetary policy.
The US dollar hovered near four-year lows on Wednesday as investor confidence in the greenback weakened further after President Donald Trump dismissed concerns over its recent decline, fuelling fresh selling across currency markets ahead of a closely watched Federal Reserve policy decision.
