The U.S. dollar index (DXY) ended Tuesday largely unchanged after experiencing downward pressure due to a nearly 12% drop in oil prices. However, it found some support from a 5.6 basis point rise in the 10-year Treasury note yield. Notably, February’s existing home sales rose by 1.7% month-over-month to 4.09 million, surpassing expectations of a decline to 3.88 million.
In the Middle East, an Iranian drone attack on the Ruwais Industrial Complex in the UAE halted operations at the largest refinery due to a fire. Despite this incident, April WTI crude oil prices plummeted nearly 12%, dropping to around $83 per barrel from a recent high of $119 after an Israeli bombing of Iranian fuel depots. President Trump indicated the war with Iran could soon come to an end, while Iran’s political landscape shifted with the appointment of hardliner Mojtaba Khamenei as the new supreme leader.
Precious metals saw significant gains amid geopolitical tensions, with April COMEX gold climbing 2.71% to close higher, supported by strong central bank demand and high long holdings in gold ETFs at a 3.5-year peak. In contrast, long holdings in silver ETFs have decreased, reaching a 3.5-month low.
