On an official holiday in the United States, the dollar loses and gold records gains
Gold is trading with gains after dropping more than 5% last week, as many monetary authorities raised borrowing costs to reduce inflation.
However, the volatility of other markets continues to support the safe assets par excellence. The yellow metal rose 0.03% to $1,839.97 an ounce, palladium gained 1.72% and platinum rose 0.72%.
“It’s a public holiday in the US today, which means liquidity – as well as volatility – should be lower, making moves in gold difficult without a new catalyst,” Matt Simpson, analyst at City Index, told CNBC.
The dollar helps, as it fell 0.22% against the euro, which despite Macron losing an absolute majority, continues to make gains.
Regarding the Japanese yen, both the dollar (0.47%) and the euro (0.23%) recorded losses. This is at a time when The Bank of Japan kept short-term interest rates at -0.1% and the 10-year sovereign bond yield near zero.
The Bloomberg Dollar Index – which measures the strength of “green money” compared to 10 competing currencies – lost 0.24% to 104.4440 points, at a time when the Fed’s message on aggressive monetary policy “could not have been clearer,” says Rodrigo Cattrell, an analyst In the Australian Central Bank for CNBC.
Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
