Gold Jun '22 (GCM22)
Gold Futures Market News and Commentary
The dollar index (DXY00) climbed to a 1.5-week high today and is up by +0.22%. The dollar is moving higher today on the stronger-than-expected US Apr PPI report, which was hawkish for Fed policy. The dollar also has safe-haven support on concerns that the US-Iran ceasefire may break down after President Trump said the current ceasefire was on "life support." In addition, today's jump in the 10-year T-note yield to a 10-month high of 4.49% strengthens the dollar's interest rate differentials.Â
US Apr PPI final demand rose +1.4% m/m and +6.0% y/y, stronger than expectations of +0.5% m/m and +4.8% y/y, with the +6.0% y/y jump being the largest increase in 3.25 years. Also, Apr PPI ex-food and energy rose +0.6% m/m and +5.2% y/y, stronger than expectations of +0.3% m/m and +4.3% y/y, with the +5.2% y/y gain being the largest increase in 3.25 years.
Swaps markets are discounting the odds at 2% for a 25 bp rate cut at the next FOMC meeting on June 16-17.
EUR/USD (^EUR... Read more
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