Overview

Click to expand overview
Hace 1 día Gold falls as the US dollar strengthens ahead of key US inflation data. Investors are cautious, watching the Personal Consumption Expenditures (PCE) index due today, which Oil and GOLD prices dip as the US dollar is flexing its muscles on the international stage. The US dollar index (DXY) went from 102 to 103.5 points this week The advance for precious metals has come despite a stronger U.S. dollar, which on Tuesday rose to its highest level in four-and-a-half months, according to FactSet data. While the price stabilised on Thursday, and is little-changed in early trading today, the overall view continues to point towards further downside. The downtrend has The price of gold (XAU/USD) fell to $2,635, marking a decrease of 0.58%. This decline comes amid an uptick in the US Dollar, which has gained momentum due to a A stronger dollar, coupled with rising inflation, would likely prompt rate hikes. These rate increases could weaken gold, as higher interest rates generally reduce the appeal The US dollar’s recent surge has caused a dip in oil and gold prices, with the dollar index climbing almost 1.5% in three days. This increase in the US dollar index has

Gold Oil Prices Continue to Fall as US Dollar Grows Stronger

Gold and oil prices are under pressure as the US dollar continues its ascent. The recent surge in the US dollar index has caused a noticeable dip in both commodities. Investors are closely monitoring the situation, especially in anticipation of key US inflation data.

US Dollar Strength Weighs on Gold

Hace 1 día, gold fell as the US dollar strengthened ahead of the release of vital US inflation figures. The market is cautious, particularly with the Personal Consumption Expenditures (PCE) index due today. This index is a key indicator of inflation and will likely influence the Federal Reserve's future monetary policy decisions.

The price of gold (XAU/USD) fell to $2,635, marking a decrease of 0.58%. This decline comes amid an uptick in the US Dollar, which has gained momentum.

The advance for precious metals has come despite a stronger U.S. dollar, which on Tuesday rose to its highest level in four-and-a-half months, according to FactSet data.

Oil Prices Also Affected by Dollar Strength

Oil and GOLD prices dip as the US dollar is flexing its muscles on the international stage. The US dollar’s recent surge has caused a dip in oil prices as well, with the dollar index climbing almost 1.5% in three days. This increase in the US dollar index has put downward pressure on crude oil.

Dollar Index (DXY) Climbs

The US dollar index (DXY) went from 102 to 103.5 points this week, reflecting the dollar's increasing strength against a basket of other major currencies.

Impact of Inflation and Interest Rates

A stronger dollar, coupled with rising inflation, would likely prompt rate hikes. These rate increases could weaken gold, as higher interest rates generally reduce the appeal of the precious metal, which does not offer a yield. While the price stabilised on Thursday, and is little-changed in early trading today, the overall view continues to point towards further downside. The downtrend has put pressure on both gold and oil markets.

Stay tuned for updates as we continue to monitor the relationship between gold oil prices, the US dollar, and key economic indicators.

Top Sources

Related Articles