Positive risk sentiment fading

Markets turn defensive as geopolitical risks return

The US Dollar remains under pressure but continues to hold above an important support zone, suggesting downside momentum may be fading. At the same time, overall risk sentiment has started to deteriorate. Equity markets have pulled back from recent highs, with investors becoming increasingly cautious as geopolitical tensions between the US and Iran escalate once again. While the market reaction has been measured so far, further developments could quickly shift sentiment toward a broader risk-off environment.

Precious metals have weakened despite the softer Dollar. Gold has broken lower, while Silver has fallen below an important technical support level, increasing the risk of additional downside. In cryptocurrencies, Bitcoin has lost momentum and is trading lower, with most major altcoins following the move. Meanwhile, oil prices are testing a key resistance area. Renewed tensions involving Iran could push crude prices higher if markets begin to price in greater supply disruption risks, adding another layer of uncertainty for global markets.

Market talk

Markets are becoming increasingly sensitive to geopolitical headlines. While the US Dollar remains weak for now, its ability to hold above key support suggests a rebound cannot be ruled out. If geopolitical tensions continue to escalate and oil breaks above resistance, investors could rotate into safe-haven assets, placing additional pressure on equities, cryptocurrencies, and industrial metals. The coming sessions will likely be driven more by geopolitical developments than economic data, making oil and the US Dollar the two key markets to watch.

Tendencies in the markets

• Equities at resistance, USD at support, BTC weak, oil positive, Silver weak, Gold weak.