Gold (XAU/USD) advances on Wednesday, yet trades off a three-week high of $4,857 hit earlier in the day, as falling Oil prices weighed on the US Dollar, which weakened to a four-week low in the US Dollar Index (DXY). At the time of writing, the XAU/USD pair trades at $4,735, up more than 0.70%.
The Minutes from the Federal Reserve’s (Fed) March meeting, released on Wednesday, reinforce the idea that the Fed is firmly in wait-and-see mode, but with a growing recognition that risks are becoming more balanced.
Wells Fargo economists now expect the Federal Reserve (Fed) to delay easing in response to higher Oil prices and stickier inflation.
Scotiabank strategists Shaun Osborne and Eric Theoret highlight that the Japanese Yen (JPY) has gained over 0.7% versus the US Dollar (USD) but still lags other G10 currencies as risk sentiment improves on the ceasefire.
United States 10-Year Note Auction climbed from previous 4.217% to 4.282%
Dow Jones Industrial Average (DJIA) futures surged around 1,200 points on Wednesday, up close to 2.6%, after a last-minute diplomatic breakthrough averted what had been shaping up as a catastrophic escalation of the US-Iran war.
ING economists Peter Virovacz and Zoltán Homolya note that Hungarian inflation in March 2026 surprised on the downside versus expectations but remained above February’s decade low.
West Texas Intermediate (WTI) Crude Oil trades sharply lower on Wednesday, falling more than 10% after a temporary ceasefire agreement between the United States and Iran reduced the geopolitical risk premium embedded in prices.
The USD/JPY pair fell near the 158.30 region on Wednesday, even as the United States (US), Iran and Israel had agreed on a two-week ceasefire.
Gold (XAU/USD) gives back part of its earlier gains after rising to three-week highs on Wednesday following news of a two-week ceasefire between the United States and Iran. At the time of writing, XAU/USD is trading around $4,755, up nearly 1% on the day after touching an intraday high of $4,857.
USD/CAD trades with a downside bias on Wednesday, as the US Dollar (USD) comes under broad selling pressure following a temporary ceasefire agreement between the United States and Iran. At the time of writing, the pair is trading around 1.3847, extending losses for the third straight day.
The Pound Sterling (GBP) rallies on Wednesday, advancing for the third straight day this week, up more than 1.10% due to broad US Dollar (USD) weakness, sparked by an improvement in risk appetite following a two-week ceasefire between the US and Iran.
