The US dollar rose against most major rivals as traders assess latest geopolitical developments in the Middle East, and before the Fed’s policy decision.

Recent data showed US retail sales fell 0.9% m/m to $715.4 billion in May, while analysts expected a 0.6% drop, as auto sales drop following Trump’s tariffs. 

Later today, the Federal Reserve will convene and discuss policies, and will announce its decision tomorrow, widely expected to hold interest rates unchanged at below 4.5%. 

Markets were concerned after US President Trump urged Iranians to evacuate Tehran on Tuesday, coinciding with his early leave from the G7 meeting in Canada. 

Otherwise, the dollar index rose 0.8% as of 19:49 GMT to 98.8, with a session-high at 98.8, and a low at 98.02.

Aussie

The Australian dollar fell 0.8% against its US counterpart as of 20:05 GMT to $0.6473.

Loonie

The Canadian dollar fell 0.5% against its US counterpart to 0.744.

Gold prices fell on Tuesday as the dollar muscled up against most major rivals amid ongoing Middle Eastern tensions, and before the Fed’s policy decisions. 

Recent data showed US retail sales fell 0.9% m/m to $715.4 billion in May, while analysts expected a 0.6% drop, as auto sales drop following Trump’s tariffs. 

Later today, the Federal Reserve will convene and discuss policies, and will announce its decision tomorrow, widely expected to hold interest rates unchanged at below 4.5%. 

Markets were concerned after US President Trump urged Iranians to evacuate Tehran on Tuesday, coinciding with his early leave from the G7 meeting in Canada. 

Otherwise, the dollar index rose 0.8% as of 19:49 GMT to 98.8, with a session-high at 98.8, and a low at 98.02.

On trading, gold spot prices fell 0.3% as of 19:53 GMT to $3404 an ounce. 

US stock indices fell on Tuesday following weak data while investors assess the ongoing Iran-Israel conflict.

Recent data showed US retail sales fell 0.9% m/m to $715.4 billion in May, while analysts expected a 0.6% drop, as auto sales drop following Trump’s tariffs. 

Later today, the Federal Reserve will convene and discuss policies, and will announce its decision tomorrow, widely expected to hold interest rates unchanged at below 4.5%. 

Markets were a bit concerned after US President Trump urged Iranians to evacuate Tehran on Tuesday, coinciding with his early leave from the G7 meeting in Canada. 

On trading, Dow Jones fell 0.1% as of 16:08 GMT, or 29 points to 42,485 points, while S&P 500 fell 0.2%, or 15 points to 6018 points, as NASDAQ shed 0.3%, or 63 points to 19,637 points. 

Copper prices fell on Tuesday as tensions escalated in the Middle East, raising concerns about global growth and demand on industrial metals, while a stronger dollar weighed further on prices.

Copper three-month futures at the London Metals Exchange fell 0.1% to $9697 a ton.

Global markets edged lower while oil prices rose as the Iran-Israel fighting entered its fifth day, raising concerns about a wider regional conflict. 

The dollar also gained ground today, making the greenback-denominated commodity futures costlier to holders of other currencies. 

Future Outlook

In a memo, Citibank expects copper prices to drop to $8800 a ton in the third quarter of the year if the US imposed tariffs on copper imports.

US President Donald Trump ordered an investigation into the possibility of imposing tariffs on copper imports in February.

Currently, copper COMEX futures are trading at $4.806 a pound, raising its price premium over London contracts to $898 a ton.

As for Other Metals: 

Aluminum rose 0.4% to $2522 a ton

Zinc fell 0.5% to $2643 a ton

Nickel shed 0.1% to $15,055 a ton

Tin lost 0.6% to $32,385 a ton

Lead slipped 1.2% to $1983 a ton

Otherwise, the dollar index rose 0.5% as of 15:35 GMT to 98.4, with a session-high at 98.4, and a low at 98.02.

On trading, copper September futures fell 1% as of 15:31 GMT to $4.84 a pound in American trade.