The dollar falls after a surprise from a member of the Federal Reserve and a strong rise in gold prices

 The dollar falls after a surprise from a member of the Federal Reserve and a strong rise in gold prices

Gold prices recorded a strong rise towards the close of trading on Tuesday, as the yellow metal is trading at its highest levels since early May, supported by the sharp decline witnessed by the US dollar in currency market transactions today, amid the inverse relationship between the two parties.

This strong decline was driven by the less hawkish statements of US Federal Reserve Bank member Christopher Waller, which made clear the futility of the US Federal Reserve keeping interest rates at high levels if inflation continues to decline over the next few months.

This has strengthened market expectations regarding the end of the monetary tightening cycle and the arrival of the final interest rate, and the US Federal Reserve is likely to begin reducing interest rates early next year.

Based on these developments, the US dollar index (which measures the dollar’s ​​performance against a basket of six other currencies) fell by about 0.32% to record about 102.86 points, which is the lowest level of the dollar index in more than three months.

As for gold trading, the prices of spot gold metal contracts jumped by 1.20%, or $25, to $2,038.26 per ounce, and the prices of futures contracts for gold metal (December delivery) rose by approximately 1.34%, or $26, to $2,039.35 per ounce.

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