Currency Market Influence

The dollar index hovered near two-month lows, pressured by a rally in the yen following suspected intervention by Japanese authorities. A weaker greenback historically makes bullion cheaper for international buyers, providing a lift to spot prices.

Geopolitical Risk Premium

Despite hopes for a ceasefire, the naval blockade of the Strait of Hormuz remains a primary driver of market uncertainty. The World Gold Council reported that central banks continue to increase reserves, reinforcing the metal's long-term value architecture.