Dollar Softens and Metals Hold Gains (04.10.2026)

Markets moved sideways as investors balanced easing inflation pressures with ongoing geopolitical risks. 

EUR/USD held below 1.17 as expectations for further ECB rate hikes increased, while sterling remained steady near recent highs with similar tightening outlooks. The Japanese yen hovered around 159, supported by lower oil prices but still pressured by economic concerns. In commodities, gold and silver maintained their upward momentum, supported by a softer dollar and reduced inflation fears following the US-Iran ceasefire. Overall, sentiment remained cautious, with attention shifting toward upcoming diplomatic talks and policy expectations.

Euro Holds Below 1.17

EUR/USD traded flat under 1.17 amid ongoing geopolitical risks. Meanwhile, market participants are raising their expectations for further interest rate hikes by the European Central Bank.

For EUR/USD, the initial resistance is seen at 1.1700, while the closest support is positioned at 1.1620.

Gold Sustains Gains Above $4,700

Gold remained steady above $4,700 per ounce, heading for its third weekly advance. Lower oil prices following the US-Iran ceasefire eased inflation fears, while a softening dollar and safe-haven interest provided further support. Market attention is now turning to scheduled diplomatic discussions in Islamabad between Iranian and American representatives.

First resistance is seen at $4850, with initial support near $4740.

Yen Hovers Near 159

The yen stayed around 159 per dollar. Lower oil prices provided support, yet worries regarding Japan’s economic prospects and high energy costs continued to pressure the currency.

Initial resistance stands at 159, while the first support is located at 157.90.

Sterling Steady Near $1.34

The pound steadied around $1.34 while investors tracked geopolitical developments. Markets are also weighing the likelihood of further interest rate increases from the Bank of England.

From a technical view, support stands near 1.3460, with resistance around 1.3350.

Silver Holds Above $75

Silver stayed over $75 per ounce, continuing its weekly climb as lower oil prices cooled inflation worries. A softening dollar provided additional tailwinds while market participants turned their focus toward upcoming diplomatic talks between the US and Iran.

From a technical view, resistance stands near $77.25 while support is located around $73.