Escalating Middle East tensions and rising energy costs dominated global markets.

Rising tensions in the Middle East pushed investors toward safer assets.

Trade tensions returned to center stage, setting off a chain reaction across currencies, metals, and bond markets.

Cooling US inflation reshaped rate expectations, pressured the dollar and lifted metals.

The dollar slipped below 97.5, gold reclaimed the $5,000 level, and bond yields adjusted to shifting policy expectations.

The last week of January saw market pricing adjust across asset classes as currency weakness, record-setting moves in precious metals, and uneven central bank signals shaped sentiment.

This week’s flow of macro data adds detail, but the bigger story remains how long restrictive policy can coexist with slowing momentum.

The dollar lost momentum as questions around central-bank independence and softer U.S. employment data altered rate expectations, while precious metals surged to record levels on rising political tension and demand for protection.