While trade tensions have eased in the international financial market for the past few days and investments have started flowing smoothly, 3 important changes took place in the investment market on Thursday, turning it into an action Thursday. First, the value of the US dollar fell, prompting a major change in US monetary policy, and the DXY index fell 0.29% to 98.3401. Second, oil and gold prices have risen due to increased tensions in the Middle East. This has created a situation that will affect this investment market as well.
US Dollar Falls: The US dollar continued to depreciate, with the DXY index falling 0.29% to 98.3401, having fallen 2.64% in the past month alone. The demand for the dollar as a safe haven currency has decreased as trade tensions eased. In addition, market expectations that the US Federal Reserve may stop raising benchmark interest rates are also a major reason for the dollar's decline.

Crude oil prices rise: The risk of conflict between the US and iran has increased, and fears of supply disruptions in the Middle east have pushed up its prices. Investors expect a sharp rise in crude oil prices if the conflict intensifies. Meanwhile, crude oil prices recorded a sharp rise in today's Asian market trading.

The US is preparing to evacuate all non-essential staff from its embassy in Baghdad, two State Department officials told NBC News. They did not fully explain the reason for this. A third State Department official said, "Trump is committed to keeping Americans safe at home and abroad."
Asian markets have started to recover from morning gains after news broke that the US has decided to evacuate diplomats to hold talks with Iran. Most oil prices fell more than 0.50 percent.

Gold prices rise: Rising geopolitical tensions and signs of easing US inflation have pushed up gold prices. gold, considered a safe-haven asset by the world, is attracting investors due to global risks and expectations of a Federal Reserve interest rate cut. Today, the price of an ounce of 24-carat gold has risen to $3,374 from $3,320 in international trade. In response, the price of 10 grams of 24-carat gold in the indian retail market has risen by Rs 880 to Rs 99,280. silver prices are trading largely unchanged at Rs 1,18,900.

“Geopolitical tensions and trade concerns have affected the dollar value a lot. For the same reason, gold and crude oil prices have also risen.” US trade policy uncertainty, US Federal Reserve decisions, and US-Iran-Israel war tensions have severely affected not only the indian market but also the international market.
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Sowmiya Sriram

12/06/2025 02:17 PM