Gold and Dollar Rise Together

The US dollar traded steadily in Europe on Tuesday, while the Japanese yen rose following suspected intervention by the Japanese government last week.
The US dollar index recorded 104.190 against a basket of foreign currencies, an increase of 0.14%.
The dollar is awaiting the release of important data that could affect its movement and the price of gold.

Topic
Details
Currencies

Details

Gold rose by 0.43% to $2404 for futures contracts per ounce, and the spot gold price increased by 0.3% to $2403.9.
Wall Street indices also saw varying rises at the start of today’s trading.

The US dollar remained steady on Tuesday as traders seemed to take a breather in the absence of significant economic data until the release of the US Personal Consumption Expenditures (PCE) inflation data for June on Friday.

Vice President Kamala Harris has become the Democratic candidate for the presidency but still needs to be formally nominated.
Meanwhile, poll data showed Republican candidate Donald Trump leading President Biden and Harris.

Expectations of Trump’s return to the presidency have bolstered the dollar,
as he is expected to pursue protectionist trade policies.

Currencies

Ahead of the release of major economic data, the EUR/USD pair fell by about 0.2% to 1.0873.
Despite the ongoing economic slowdown in the Eurozone, a strong services sector,
supported by tourism activity, has kept inflation pressures high.

This presents a challenge for the European Central Bank (ECB), which will closely monitor the Purchasing Managers’ Index (PMI) data on Wednesday,
after keeping interest rates at 3.75% last week, indicating that future decisions will depend on data.

In the market, two rate cuts are being priced in for the ECB for the remainder of the year.

On the other hand, the GBP/USD pair fell by about 0.1% to 1.2919, retreating from the 1.30 level it reached last week for the first time in a year. The pound was supported by political stability in the UK following the Labour Party’s victory in the recent elections. It is also believed that the Bank of England will raise interest rates for a longer period compared to its peers.

Gold and Dollar Rise Together

Gold and Dollar Rise Together

Related Topics