Gold Futures Market News and Commentary
The dollar index (DXY00) on Tuesday fell -0.342 (-0.35%). The dollar index on Tuesday dropped to a 2-week low. A slump in T-note yields on Tuesday undercut the dollar after the 10-year T-note yield fell to a 2-1/4 month low of 1.410%. Also, weaker-than-expected U.S. economic data on Tuesday was bearish for the dollar. The dollar recovered half of its losses after Fed Chair Powell said the need for support from asset buying has clearly diminished and "it's appropriate" for the FOMC to talk about accelerating QE tapering at the next meeting in December.
EUR/USD (^EURUSD) on Tuesday rose +0.0037 (+0.33%). EUR/USD on Tuesday climbed to a 2-week high on dollar weakness and Eurozone price pressures that are hawkish for ECB policy. Eurozone Nov core CPI rose a record +2.6% y/y (data from 1997), stronger than expectations of +2.3% y/y. Strength in the German labor market was also supportive for EUR/USD after the German Nov unemployment rate unexpectedly fell -0.1 to a 20-month lo... Read more