Precious Metals and the Euro Weaken as Dollar Strengthens

Precious metals faced broad declines during the session as rising yields and a firmer dollar weighed on the complex. Gold slid to a two-month low on Wednesday, October 7. Selling also extended across other precious metals, with platinum and palladium falling alongside bullion under pressure from higher Treasury yields.

Crude oil experienced a supply-risk rally as tensions threatened infrastructure and shipping. Concerns over crude supplies mounted after attacks on Saudi airport facilities heightened regional security risks. An international decision to accelerate emergency stockpile releases subsequently helped cap those price gains.

In currency markets, the dollar strengthened against other major currencies as the dollar index rose 0.37%. The dollar found additional support as investors weighed energy prices and awaited policy signals ahead of the central bank's afternoon meeting minutes release. The euro weakened 0.6% against the dollar as fiscal worries lingered across the region.

Because commodity and foreign exchange benchmarks trade around the clock, prices moved further overnight. As of 10:50 am New York, round-the-clock quotes showed silver -3.8% and the euro against the dollar -0.7%, extending Wednesday's declines.

In digital currencies, Bitcoin -0.2% and Ethereum -0.1% moved little on Wednesday, October 7.

Ahead on the calendar, several scheduled events are set to provide fresh guidance. European central bank officials will publish the account of their monetary policy meeting on October 8. In the United States, upcoming reports include the September consumer price index on October 14, followed by producer price data and retail sales figures on October 15. Later in the month, the Federal Reserve convenes for its next interest rate decision on October 27 and October 28, with the Bank of Canada announcing its monetary policy decision on October 28 and the Bank of Japan meeting for its policy review on October 29 and October 30.