Gold Jun '21 (GCM21)
Gold Futures Market News and Commentary
The dollar index (DXY00) on Tuesday rose by +0.09%. The dollar rose slightly on Tuesday after the US March trade deficit was reported to be smaller than expected. The dollar also has safe-haven support as the US-Iran ceasefire appears shaky after the US Central Command on Monday said the US military fought off attacks from Iranian drones, missiles, and armed small boats as it facilitated the passage of two US-flagged vessels through the Strait of Hormuz. Tuesday's US economic news was mixed for the dollar: Mar new home sales and Mar JOLTS job openings were better than expected, but Apr ISM services activity was weaker than expected.
Gains in the dollar were limited on Tuesday amid a -3% decline in crude oil prices, which eases inflation expectations and could prompt the Fed to pursue a dovish, dollar-negative monetary policy. Also, Tuesday's stock strength has dampened liquidity demand for the dollar.Â
Heightened US-Iran tensions are boosting demand for the dollar as... Read more
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