Gold has fallen for a third consecutive week, dropping to its lowest level since mid-June as a stronger US Dollar and hawkish Federal Reserve expectations erode the metal's appeal.
Preliminary United Kingdom flash S&P Global Services Purchasing Managers’ Index (PMI) declines at a faster pace to 48.7 in June from 49.3 in May. The Services PMI was expected to arrive higher at 50.0, a figure that separates expansion from contraction.
Deutsche Bank’s Early Morning Reid highlights that the Japanese Yen remains under pressure, trading close to 40‑year lows versus the US Dollar.
Dow Jones futures fall by 0.72%, trading near 51,750 during the European hours on Tuesday. However, S&P 500 futures are down by 1.4% near 7,430, while Nasdaq 100 futures decline 2.29%, trading near 29,950 at the time of writing.
OCBC’s Christopher Wong notes that easing US–Iran tensions have pushed Brent below USD80 as markets price a high probability of normalised Strait of Hormuz flows.
European Central Bank (ECB) Chief Economist Philip Lane said at the European Parliament in Brussels that inflationary pressures in the Eurozone economy could remain above 2% for quite some time despite peace prospects between the United States (US) and Iran.
The Canadian Dollar (CAD) is facing renewed pressure as USD/CAD extends its rally to 14-month highs, with Societe Generale noting a decisive shift in momentum and RBC highlighting that domestic inflation remains skewed by volatile energy costs.
Gold (XAU/USD) breaks below the $4,100 mark, hitting its lowest level in nearly two weeks during the first half of the European session on Tuesday amid a bullish US Dollar (USD). Despite positive signals from US-Iran peace talks, investors remain skeptical over a final deal.
United Kingdom S&P Global Manufacturing PMI came in at 53.1, below expectations (53.6) in June
United Kingdom S&P Global Composite PMI came in at 49.4 below forecasts (50.6) in June
United Kingdom S&P Global Services PMI below forecasts (50) in June: Actual (48.7)
The USD/CHF pair trades with a positive bias for the fifth straight day on Tuesday, near its highest level since November 2025, with bulls awaiting sustained strength above the 0.8100 mark before positioning for further gains.
