On Tuesday, U.S. Defense Secretary Hergeseth said the U.S. cease-fire with Iran remains in effect, easing fears that the region will slide back into all-out war after this week’s attack in the UAE.
The U.S. dollar index traded sideways and ended up 0.019% at 98.48. The yield on the benchmark 10-year U.S. bond closed at 4.429%, while the yield on the 2-year U.S. bond, which is sensitive to the Federal Reserve’s policy rate, closed at 3.95%.
Precious metals rallied as signs that the U.S.-Iranian cease-fire is still in effect eased inflation concerns and upward pressure on interest rates. Spot gold rose and then fell, hitting a high of $4,586.61 per ounce before finally closing up 0.74% at $4,557.55 per ounce; spot silver closed up 0.14% at $72.83 per ounce.
International oil prices fell, but remained high as the Strait of Hormuz remained largely closed.WTI crude oil ended down 2.45% at $103.63/bbl; Brent crude oil ended down 2.96% at $108.96/bbl.