Yen Dips, Metals Diverge on Demand Shifts (06.10.2025)

Markets moved cautiously on Tuesday as renewed optimism around US-China trade talks and stable macro data shaped sentiment across major assets.

The euro held above $1.14 ahead of ECB commentary, while the yen slipped as risk appetite improved. Gold declined below $3,310 with fading demand, and silver stayed firm near 13-year highs. Meanwhile, the British pound hovered near $1.354, supported by domestic fundamentals and a weaker dollar. 

Euro Trades Above $1.14 Before ECB Comments

The euro held firm above $1.14 on Tuesday, approaching a six-week high as attention turned to US-China trade negotiations and upcoming statements from ECB officials. High-level talks in London focused on rare earths and tech exports, while markets also assessed the ECB’s recent 25 bp rate cut and downward revisions to inflation forecasts for 2025 and 2026. Policymakers hinted at a possible pause in further easing.

Resistance is seen at 1.1460, while support stands at 1.1380.

Yen Slips Toward 145 on Risk Appetite

The Japanese yen weakened to around 145 per dollar, nearing a two-week low as improved sentiment over US-China trade reduced demand for safe-haven assets. Talks in London centered on strategic export controls, while Japan’s revised Q1 GDP came in flat, an improvement from the earlier estimated 0.2% decline. BoJ Governor Ueda reiterated a potential rate hike if conditions allow.

Resistance is located at 144.70, with support found near 142.50.

Gold Falls to $3,310 on Weakening Demand

Gold prices slipped under $3,310 per ounce as optimism surrounding US-China trade discussions weighed on safe-haven demand. London meetings were described as "fruitful," easing market nerves. Meanwhile, upcoming US inflation data and a New York Fed survey pointing to easing consumer inflation concerns also pressured gold.

Support lies at $3,290, while resistance is set at $3,352.

Pound Nears $1.354, Supported by UK Outlook

The British pound hovered around $1.354, supported by strong domestic data and a softer dollar. Focus remains on the UK’s spending review and trade talks between the US and China, both of which could impact market sentiment. Investors also await key US inflation figures for further clues on the Fed’s policy path.

Resistance is seen at 1.3600, with support around 1.3425.

Silver Stays Above $36.5 on Supply Tightness

Silver held above $36.5 per ounce, close to a 13-year high, supported by ongoing supply constraints and strong industrial demand, particularly in the solar sector. With gold losing steam and Chinese export data coming in soft, investors rotated into silver with broader risk caution.

Resistance is located at 36.90, while support stands at 35.40.