The dollar falls after the Fed calmed down, and gold is rising

0
18


The US dollar fell against other major currencies, Friday, as risk appetite recovered in various markets, after Fed officials this week helped ease tension over the acceleration of inflation in the United States.
The dollar, which is considered a safe haven in times of market volatility, fell by a third of a percentage point against a basket of currencies, erasing some of its earlier gains it made on Wednesday after data showed a sudden rise in consumer prices.
Federal officials played down expectations of tightening the policy, stressing that the price hike on the back of the reopening of the economy would be temporary.
US consumer prices rose at the fastest pace in nearly 12 years in April, driven by a boom in demand.
The euro was among the winning currencies against the dollar today, as it rose 0.4 percent to $ 1.21265.
The British pound is heading to record a profit of more than 0.5 percent on a weekly basis, supported by bets on a strong economic recovery in Britain and expectations that there will be no referendum on the independence of Scotland.
As for cryptocurrencies, Bitcoin is heading to record its worst weekly performance since February, as it is trading near the $ 50,000 level, after Tesla Chairman Elon Musk said this week that he would stop accepting payments in cryptocurrency for its cars due to environmental concerns.

Interest rate concerns

Gold prices increased on Friday on the back of the dollar’s decline, but the gains were limited after data showed a rise in inflation in the United States, which fueled fears of a faster rate hike than expected.
By 0626 GMT, spot gold rose 0.2 percent to $ 1829.61 an ounce. US gold futures advanced 0.2 percent to $ 1,827.40.
“Inflation is not necessarily negative for gold, but it is negative for central banks to start moving against the background of that, and the market is becoming a bit tense, considering that this may lead to an advance of the Federal Reserve cut.” Little American ».
Important economic data in the United States this week showed a bigger-than-expected rise in consumer prices and a drop in weekly jobless claims to their lowest level in 14 months, fueling concerns about growing inflation and the possibility of raising interest rates.
Higher interest rates increase the opportunity cost of holding gold.
As for the other precious metals, palladium gained 1.8 percent to $ 2,914.28 an ounce. Silver increased 0.1 percent to $ 27.09, while platinum rose 0.9 percent to $ 1216.69.
(Reuters)





LEAVE A REPLY

Please enter your comment!
Please enter your name here