Gold slumps over 4% as US yields surge on Middle East escalation

Gold (XAU/USD) drops more than 4% on Tuesday as high US Treasury yields weighed on the yellow metal, which usually works as a hedge amid global geopolitical uncertainty and conflicts.

Fed’s Kashkari: Too soon to know how Iran war will affect inflation

Neel Kashkari, President of the Federal Reserve (Fed) Bank of Minneapolis, said that the Iran war impact could have an effect in the monetary policy, but it is too soon to know if it could even impact inflation at the Bloomberg Invest Conference on Tuesday.

Dow Jones Industrial Average plunges as Iran war fears rattle Wall Street

The Dow Jones Industrial Average (DJIA) dropped around 850 points, or 1.7%, to trade near 48,000 at midday Tuesday as escalating conflict in the Middle East sent shockwaves through global markets. The S&P 500 fell 1.62% to 6,770, while the Nasdaq Composite shed 1.72% to 22,357.

AUD/USD drops under 0.7000 as US Dollar strengthens amid Middle East war

AUD/USD extends its pullback and trades around 0.6990 on Tuesday at the time of writing, down 1.36% on the day, after breaking below the 0.7000 level. The pair is now hovering at multi-week lows, pressured by renewed demand for the US Dollar (USD) and a market environment dominated by risk aversion.

ECB: Energy shock keeps policy steady – Nomura

Nomura’s Andrzej Szczepaniak, Josie Anderson, George Buckley and David Seif argue that the European Central Bank will largely look through recent energy-driven market moves and keep its focus on its end-horizon HICP forecast.