The Dollar Continues to Rise as Trading Opens for the Week: The dollar stabilized on Monday,
maintaining its most significant weekly gain since 2022.
Escalating crises in the Middle East and concerns about high US interest rates supported the dollar.

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The Dollar Continues to Rise as Trading Opens for the Week

Opening on the rise for gold

Oil prices react to geopolitical tensions

The Dollar Continues to Rise as Trading Opens for the Week

The dollar stabilized on Monday, retaining its most significant weekly gain since 2022,
buoyed by escalating crises in the Middle East and concerns regarding high US interest rates.
The dollar saw a 1.6% increase against a basket of six major currencies last week,
following the release of US inflation data that sparked concerns about potential cuts in US interest rates.
Meanwhile, European policymakers indicated the possibility of interest rate cuts within a few months.
On Friday, the dollar reached a five-month high against the euro,
with the euro trading near those levels at the start of the Asian session at 1.0655 dollars.

Opening on a Rise for Gold

Gold prices increased in current trading on Monday, hovering near record-high levels recorded in the previous session.
Traders closely monitored developments surrounding the conflict in the Middle East,
prompting them to buy safe-haven assets like gold bullion.
Gold remains attractive as a financial asset due to geopolitical risks and the potential
for federal interest rate cuts in the year’s second half.
Gold rose to $2400 in the previous session and recorded more than 14% gains this year,
thanks to strong purchases from central banks and safe-haven flows amid ongoing geopolitical risks.
Despite recent US economic data indicating improvements in the labor market and rising inflation,
the President of the Federal Reserve Bank of Boston, Susan Collins,
expects two interest rate cuts this year, as lower interest rates reduce the alternative cost of holding gold bullion.

Oil Prices React to Geopolitical Tensions

Oil prices fell at the opening of Asian markets on Monday,
as market participants reduced risk premiums following an Iranian attack on Israel late Saturday.
The Israeli government confirmed that the attack caused only limited damage.
Brent crude futures for June delivery fell by 24 cents to $90.21 per barrel,
and West Texas Intermediate crude futures for May delivery decreased by 38 cents to $85.28 per barrel.
The attack involved more than 300 rockets and drones,
marking the first such targeting of Israel by another country in over 30 years.
This attack raised fears of an escalation in regional conflict that could affect oil movement in the Middle East.
Nevertheless, the attack, which Iran described as a response to an airstrike targeting its consulate in Damascus,
resulted in only minor damages, as Israel’s Iron Dome defense system intercepted most of the missiles.
Israel neither confirmed nor denied responsibility for the attack on the Iranian consulate.
Oil prices rose on Friday due to expectations of Iran’s response to the targeting of its consulate,
reaching the highest levels since October.
However, prices dropped by one percent at the close of the week’s trading after
the International Energy Agency reduced its forecasts for oil demand growth this year.

The Dollar Continues to Rise as Trading Opens for the Week

The Dollar Continues to Rise as Trading Opens for the Week

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