Metals Retreat and Dollar Weakens Ahead of Inflation Data

Precious metals faced selling pressure into the close on Tuesday, October 13 before declines extended into overnight trading across international commodity markets. During regular trading, silver fell 1.8% and gold declined 0.3% as investors awaited key inflation data and policy speeches from Federal Reserve officials. That decline deepened after regular hours as round-the-clock benchmarks continued to trade into Wednesday morning. By 10:20 am New York, trading showed silver -4.1%. Overnight trading in gold also moved further following Tuesday's close, and by 10:20 am New York, overnight markets recorded gold -1.4%.

Energy markets saw a split finish on Tuesday. Crude oil settled mixed, reflecting competing supply expectations across global energy markets. Traders weighed expectations that an agreement could increase Russian diesel supplies to ease fuel shortages, which pressured prices, against supply disruption concerns driven by drone strikes in Saudi Arabia and heightened security risks near shipping channels in the Strait of Hormuz.

In currency trading, the U.S. dollar retreated from an 18-month high as Treasury yields leveled off and expectations grew that central bank officials would resist another near-term rate hike. The euro strengthened against the dollar, rising 0.34% as French fiscal and political risks kept gains measured. The Japanese yen strengthened 0.36% against the dollar after Bank of Japan price data supported the currency.

In digital assets, official closing prices on Tuesday registered Bitcoin -0.6% and Ethereum -0.8%.

On the economic calendar, scheduled events include the release of the U.S. Consumer Price Index report and scheduled public remarks on the monetary policy outlook from Federal Reserve Chair Kevin Warsh.