U.S. Dollar Hits Six-Week Low Amid Geopolitical Tensions

The U.S. dollar index fell 0.99% on Thursday to a six-week low, triggered by weak second-quarter GDP growth and the Federal Reserve's decision to maintain current interest rates. The decline accelerated as the Japanese yen surged to a 2.5-month high following suspected market intervention by Japanese authorities. Simultaneously, the euro reached a six-week high, supported by stronger-than-expected economic confidence and GDP growth in the Eurozone.

Currency volatility coincided with a spike in geopolitical instability. United States Central Command reported that American forces conducted airstrikes against military targets in Iran to degrade threats to U.S. troops. Iran responded with retaliatory drone and missile strikes targeting Kuwait and Jordan.

These combined economic pressures and military escalations drove gold and silver prices higher. Market activity was further influenced by the People's Bank of China, which increased its gold reserves for the twentieth consecutive month, and expectations of a September rate hike from the European Central Bank.