Galaxy Futures: Middle East Conflict Risk Reassessment Impacts Market Sentiment

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Yesterday, the market reassessed the intensity and duration of the Middle East geopolitical conflict, leading to a hit on risk sentiment. Major global stock markets declined significantly, with U.S. stocks also showing a pessimistic outlook. The liquidity drag caused by short-term sell-offs in risk assets led to a sharp drop in gold and silver prices, surpassing the support provided by short-term safe-haven sentiment; at the same time, high short-term oil prices raised concerns about a rebound in U.S. inflation, reducing expectations for the Fed to cut interest rates again this year. The dollar generally strengthened, also putting pressure on gold and silver. Looking ahead, the market trend will mainly depend on how the Middle East conflict unfolds, with gold and silver expected to remain in a wide range of high-level fluctuations. (Galaxy Futures)

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