Middle East tensions drove the US dollar and gold prices higher.

On Monday, the US dollar index strengthened due to the expansion of the Middle East conflict triggering safe haven demand, ultimately closing up 0.9% at 98.55. The benchmark 10-year Treasury yield closed at 3.951%, while the 2-year Treasury yield sensitive to the Federal Reserve policy rate closed at 3.385%. After the US and Israel launched military strikes against Iran, geopolitical risks in the Middle East sharply increased, and safe haven funds flooded into the gold market, pushing spot gold prices to briefly break through the $5400 mark, reaching a high of $5419.01 and ultimately closing at $5321.97. The conflict between the United States, Israel, and Iran has spread to Lebanon, with US media reporting that the US is preparing for a "massive attack" on Iran in the next 24 hours. Gold prices are expected to continue to fluctuate higher in the short term, although the surge in US dollar and US Treasury yields has limited their gains. With Israel and the United States launching attacks on Iran, Iran's retaliatory actions have led to the forced closure of multiple oil and gas facilities in the region, key shipping in the Strait of Hormuz being blocked, and oil and gas prices rising sharply. WTI crude oil rose 5.41% to $71.07 per barrel; Brent crude oil closed up 6.02% at $77.49 per barrel.