Gold and Silver End of Week Review

AUD/USD meets fresh supply and eases below 0.7100 following the release of dismal Australian Trade Balance data on Thursday. A record-low growth target set by China for 2026 also weighs on the Chinese proxy, the Australian Dollar, while the US Dollar finds fresh bids amid the ongoing geopolitical tensions in the Middle East. 

USD/JPY holds the pullback from the year-to-date high in the Asian session on Thursday, keeping the red below 157.00. Fears of intervention, along with expectations that the BoJ will stick to its policy normalization path, support the Japanese Yen and weigh on the pair amid a subdued US Dollar. However, geopolitical tensions could benefit the USD's reserve currency status amid reduced bets for more aggressive easing by the Fed and cushion the currency pair.

Gold bounces toward $5,200 for the second consecutive day on Thursday amid a modest US Dollar weakness. Wednesday's upbeat US macro data further tempered hopes for three rate cuts by the Fed in 2026. Furthermore, escalating Middle East tensions might continue to benefit the USD's status as the global reserve currency and contribute to capping the bullion.

Ethereum has jumped above $2,100 on Wednesday, following a general recovery across the crypto market. The move was accompanied by a spike in Ethereum's open interest, which has increased to 13.43M ETH — its highest level since January 31. 

At first glance, the latest escalation involving the United States with both Iran and Venezuela looks like another chapter in a long-running geopolitical story. But viewed through a broader strategic lens, something else may be unfolding: Energy.

The US Dollar (USD) eased on Wednesday after a two-day rally drove the US Dollar Index (DXY) near the 100.00 mark. The Greenback ignored the positive employment data and ISM Services PMI as the ongoing war between the US and Iran weights on sentiment.