Dollar rises and gold steady on economy due to US inflation data

The dollar rose to a multi-month low on Thursday after core inflation was recorded… United States The lowest rates in 3 years, which strengthened expectations for interest rate cuts in the world’s largest economy and increased challenges that the US currency may have reached its peak for the current phase.

The index increased Dollar A measure of the US currency’s strength against a basket of 6 currencies, it rose 0.04% to 104.38 points.

Currency performance

In Asia, he continued Yen In the second session recovery, the spread between US and Japanese yields narrowed, posting the strongest levels of 153.6 per dollar in two weeks, before falling to 154.68.

The Australian dollar rose 1% yesterday to hit a 4-month high of $0.6714, but its rally was halted after an unexpected rise in unemployment in Australia, hitting $0.6672 in late trade.

And he went up Euro The New Zealand dollar rose to a two-month high of $0.6140 before falling to $0.6106 from its two-month high of $1.0895 before falling to $1.0867.

Pound Sterling hit a one-month high of $1.27, but eased slightly to $1.2671.

On Wednesday, US core inflation eased to 3.6% year-on-year, in line with market expectations.

While the rate is still above the Federal Reserve’s (U.S. central bank) target of 2%, investors believe its decline from the 3.8% level recorded in the previous month will pave the way for a rate cut in September or perhaps later. Especially the US presidential election is going to be held in November.

Yesterday, Wednesday, the dollar index lost 0.75%, marking its biggest one-day percentage decline since the start of the year.

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Gold

Gold prices were flat today after a sharp rise in the last session amid a weaker dollar and Treasury yields on the back of US inflation data that boosted the likelihood of an interest rate cut next September.

An ounce in spot contracts was down 0.1% at $2,383, while futures for June delivery were down 0.35% at $2,386.4, at the time of writing.

Reuters quoted Tim Waters, chief market analyst at KCM Trading, as saying: “Gold appears to be actually thriving in early trade and heading towards the $2,400 level as inflation resumes its downward path.”

“However, a possible rise in the dollar or Treasury yields could be the biggest drag on gold prices later in the week,” he added.

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