Gold Apr '21 (GCJ21)
Gold Futures Market News and Commentary
The dollar index (DXY00) recovered from a 1-week low on Friday and finished up by +0.07%.  The fragile and uncertain situation in the Middle East is supporting safe-haven demand for the dollar today after Iran vowed to respond to the US attacks this week on Iran’s rail and maritime infrastructure.  Also, higher T-note yields on Friday strengthened the dollar’s interest rate differentials.Â
The dollar initially moved lower on Friday as easing geopolitical tensions undercut crude oil prices, after an American official said that talks between the US and Iran over a permanent peace deal are continuing, with the US still committed to a diplomatic solution. Also, Al Jazeera reported Friday that Qatar said it supports all efforts to defuse US-Iran tensions. Lower crude oil prices undercut inflation expectations and could prompt the Fed to loosen monetary policy, a negative factor for the dollar.Â
The swaps markets are discounting the odds at 34% for a +25 bp rate hike at the... Read more
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