Gold (XAU/USD) slides to over one-week lows on Friday, pressured by a stronger US Dollar (USD) and rising Treasury yields as mounting Oil-driven inflation risks strengthen expectations that the Federal Reserve (Fed) could keep interest rates elevated for longer.

Scotiabank strategists Shaun Osborne and Eric Theoret highlight that USD/CAD is grinding higher into the mid‑1.37s, with the Canadian Dollar (CAD) underperforming but still faring better than many G10 commodity peers.

Industrial Production in the United States (US) expanded by 0.7% on a monthly basis in April, the Federal Reserve (Fed) reported on Friday. This print followed the 0.3% contraction reported in March and came in better than the market expectation for an increase of 0.3%.

Rabobank strategists outline how a disruption in the Strait of Hormuz could affect Oil and refined products.

United States Industrial Production (MoM) came in at 0.7%, above forecasts (0.3%) in April

United States Capacity Utilization came in at 76.1%, above forecasts (75.8%) in April

Silver (XAG/USD) plunges on Friday, erasing all gains recorded earlier this week as hawkish Federal Reserve (Fed) expectations push US Treasury yields and the US Dollar (USD) higher.

Commerzbank’s Thu Lan Nguyen notes that Aluminium production in China has exceeded official caps thanks to high prices and ample alumina, but this may not fully offset disrupted Gulf supply.

Russia Central Bank Reserves $ increased to $771B from previous $757.5B

USD/JPY trades around 158.55 on Friday at the time of writing, up 0.11% on the day, as the pair extends its bullish momentum for a fifth straight day.

Societe Generale’s Kit Juckes notes that while US yields have risen sharply since the conflict with Iran, the Dollar’s appreciation has been relatively modest because rates have also increased elsewhere.

KOSPI, the South Korean stock benchmark, soared to an all-time high of 8,046.78 on Friday, driven by a rally in the tech sector. AI-related technology and semiconductors led the advance, which later reversed amid massive profit-taking.

DBS Group Research’s Radhika Rao notes that India’s latest fuel price hike reflects higher global crude costs and aims to moderate domestic demand and imports.

Canada Foreign Portfolio Investment in Canadian Securities came in at $4.62B, below expectations ($11.4B) in March

Canada Canadian Portfolio Investment in Foreign Securities declined to $3.9B in March from previous $25.36B

United States NY Empire State Manufacturing Index registered at 19.6 above expectations (7.5) in May

TD Securities strategists revise its Federal Reserve (Fed) call, now projecting no rate cuts in 2026 and expecting the next Federal Open Market Committee (FOMC) move to still be a cut rather than a hike.

Canada Housing Starts s.a (YoY) came in at 279.3K, above expectations (240K) in April

The Euro (EUR) extends its decline against the Dollar (USD) on Friday, falling below 1.1650 for the first time since early April, on track for a 1.2% weekly depreciation.

Deutsche Bank analysts highlight that the Dollar Index (DXY) strengthened as United States (US) yields moved higher and data remained resilient. Retail sales matched expectations, and the Atlanta Fed’s GDPNow estimate for Q2 was revised up, underscoring solid economic momentum.

The Canadian Dollar (CAD) extends losses against the US Dollar (USD) for the fourth consecutive day on Friday, with the USD/CAD pair trading in the mid-range of the 1.3700s after rallying about 0.5% so far this week.

Commerzbank's Commodity Analyst Barbara Lambrecht highlights that Copper has surged to record levels on the London Metal Exchange, supported by structural demand from the energy transition and data centers.

ING’s Carsten Brzeski argues that Europe has yet to earn its “global euro moment” outlined by European Central Bank (ECB) President Christine Lagarde in 2025.

India FX Reserves, USD rose from previous $690.69B to $696.99B in May 4

The New Zealand Dollar (NZD) accelerates its reversal against a stronger US Dollar (USD) on Friday.

United States (US) President Donald Trump made a series of comments on China, Iran and Taiwan on Friday, according to Reuters reports.

Societe Generale’s Kit Juckes links the Dollar’s trajectory to shifting interest rate and growth differentials, noting that US 2-year Treasury yields have surged since the war with Iran while the Dollar Index has only modestly advanced.

Commerzbank’s Carsten Fritsch notes that the Gold price has retreated sharply as markets price in renewed US rate hikes after strong producer price data.

USD/CHF extends its advance for the fourth consecutive day on Friday and trades around 0.7850 at the time of writing, up 0.15% on the day. The pair benefits from the rebound in the US Dollar (USD), supported by resilient US economic data and renewed risk-off sentiment across markets.

The Indian Rupee (INR) slides to a fresh all-time low against the US Dollar (USD) on Friday.