The dollar index (DXY) is down by 0.04% amid concerns that the ongoing conflict in Iran could elevate energy prices and threaten economic stability. On February capital goods new orders (non-defense ex-aircraft and parts) rose by 0.6% month-over-month, surpassing expectations of 0.5%. The markets await a crucial diplomatic breakthrough before President Trump’s 8 PM EST deadline today, with rising tensions following U.S. strikes on military targets in Iran.
The Eurozone’s April Sentix investor confidence index fell to a 2.5-year low of -19.2, significantly below expectations of -8.0. Meanwhile, the euro gained 0.26%, supported by an upward revision to the March S&P composite PMI of 50.7 and hawkish comments from ECB officials. The yen has also weakened due to climbing crude oil prices, which negatively impact Japan’s economy as it relies heavily on energy imports.
Crude oil prices have surged over 3% to a four-week high, contributing to the bearish outlook for precious metals, with June COMEX gold down 0.83% and May COMEX silver down 3.60%. Despite these declines, strong central bank demand for gold persists, highlighted by China’s central bank purchasing 160,000 ounces in March, marking the largest buy in 11 months.
